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Efficiency wages and negotiated profit-sharing under uncertainty

Göcke, Matthias - 2009

Efficiency wage effects of profit sharing are combined with option values related to stochastic future profit variations. These option effects occur if the workers' profit share is fixed by long-term contracts. The Pareto-improving optimal level of the sharing ratio is calculated for two...

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Efficiency wages and negotiated profit-sharing under uncertainty

Göcke, Matthias - 2009

Efficiency wage effects of profit sharing are combined with option values related to stochastic future pofit variations. These option effects occur if the workers' profit share is fixed by long-term contracts. The Pareto-improving optimal level of the sharing ratio is calculated for two...