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This chapter reports on two experiments that were designed to test whether efficiency wage theories receive support in the laboratory. The idea is that theories which have no explanatory power even under the controlled circumstances of the laboratory, will not apply to the much more complicated...
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This chapter reports the results of experiments that were designed to test the effectiveness of reciprocity as a contract enforcement device. It turns out that reciprocity generates a significant increase in effort levels relative to the prediction based on selfish preferences. Moreover, it...
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