We study the implications of pre-play wage proposals and information revelation in a labour relationship both theoretically and experimentally. In the baseline model the employer makes a wage offer to the worker who may then accept or reject it. In a subsequent treatment, workers, moving first,...

Pre-play non-binding communication in organizations is prevalent. We study the implications of pre-play wage proposals and information revelation in a labour relationship in a laboratory experiment. In the baseline, that depicts a typical labour market interaction, the employer makes a wage...

The implications of (public or private) pre-play communication and information revelation in a labour relationship is not well understood. We address these implications theoretically and experimentally. In our baseline experiments, the employer offers a wage to the worker who may then accept or...