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In a controlled laboratory experiment, we study the impact of monetary instability on work relationships with incomplete contracts. We observe wage inertia, i.e. the reluctance to fully adjust nominal wages to the changes in the value of the currency, and effort inertia, i.e. the reluctance to...
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unions to affect nonunion wages both through the typically discussed channel of nonunion firms emulating union wages in order … union jobs as part of their outside option. We specify these channels in a search and bargaining model that includes union … indicate an important role played by union wage spillovers in lowering wages over the 1980-2010 period. We find de …
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To address the impact of regulation on ethical concerns of consumers, we study the example of minimum wages. In our experimental market, consumers have monopsony power, firms set prices and wages, and workers are passive recipients of a wage payment. We find that the consumers exhibit...
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We analyze a model of monopolistic price discrimination where only some consumers are originally sufficiently informed about their preferences, e.g., about their future demand for a utility such as electricity or telecommunication. When more consumers become informed, we show that this benefits...
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