This chapter summarizes main findings of five experimental studies. These studies were primarily designed to test the fair wageeffort hypothesis in the context of competitive experimental markets. The fair wageeffort hypothesis stipulates that wage increases raise workers' effort levels. Facing...

During the last two decades economists have made much progress in understanding incentives, contracts and organizations. Yet, they constrained their attention to a very narrow and empirically questionable view of human motivation. The purpose of this Paper is to show that this narrow view of...