A model of threat-induced nonunion wage supplements is developed in which worker support of unionization depends on both the relative wage between sectors and the likelihood of retaining employment after unionization. In contrast to previous models, the lowest wage workers no longer consistently...

The consequences of a demand constraint (low willingness to pay) are examined in a model of merger by spatial price discriminators. The imposition of a demand constraint reduces the extent of inefficiency associated with merger and also eliminates the resolution of the merger paradox obtained in...

The consequences of merger are analyzed in an N-firm model of spatial price discrimination. The merger occurs with known probability after location decisions have been made. The possibility of merger alters locations, generates inefficiency, and increases the profit of the merging firms. In the...

This paper estimates the determinants of incentive schemes. Using Australian data, we analyze a relatively large variety of incentive systems (i.e., individual piece rates, workgroup performance bonuses, workplace level systems and profit sharing) using both the new economics of personnel and...

We are the first to confirm that sufficient cost convexity in a Stackelberg model generates profitable mergers between two leaders and between two followers. Moreover, the degree of convexity required for leaders to merge is generally far smaller than that required for followers. Most...

The Service Contract Act of 1965 is one of three major laws requiring that "prevailing wages" be paid by private employers with federal contracts. This paper develops a preliminary cost-benefit framework for evaluating that Act. On the benefit side, the authors identify and analyze eight...

This paper posits that the provision of family friendly practices is, on balance, costly to firms and valuable to workers. As a consequence, we anticipate the emergence of a hedonic equilibrium in which workers provided with such practices face an implicit reduction in their earnings. Using...

As urban school systems continue to fail large segments of the school-age population, there has been an increasing concern with accountability. A major question has been: Can teachers be held accountable for the academic achievement of students? This article describes an empirical test of a...