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We investigate how workers' performance is affected by the timing of wages in a real-effort experiment. In all … wages by small amounts raises performance by about 15% relative to a constant wage. The effort reactions can be organized by … a model in which agents reciprocally respond to wage impulses, comparing wages to an adaptive reference standard …
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We derive, compare, and test the predictions of three models of gift exchange: Classical (CGE); Augmented (AGE) based on unexpected wage surprises and first order beliefs; and Belief-based (BGE) that uses second order beliefs to formally model guilt-aversion. Motivated by Akerlof (1982), we also...
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, agents are not informed about their co-workers' wages and efforts, but in the second treatment they are. Our results show …
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Fairness in competitive games such as the Ultimatum Game is often defined theoretically. According to some of the literature, in which fairness is determined only based on resource allocation, a proposal splitting resources evenly (i.e., 5:5) is generally assumed as fair, and minimal deviation...
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