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People's fairness preferences are an important constraint for what constitutes an acceptable economic transaction, yet … arising from previous transactions play an important role in shaping perceptions of fairness. Buyers used to high market … two classes of models of path-dependent fairness preferences - either based on endogenous fairness reference points or …
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This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how “direct” performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over...
Persistent link: https://www.econbiz.de/10012241077
This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how "direct" performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over the...
Persistent link: https://www.econbiz.de/10012254054