314 research outputs found

    Incomplete and Asymmetric Surplus Information in Labor Relations

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    Numerous laboratory experiments show that workers reciprocate to high wages with high effort, when there is perfect information on the surplus created. Recent field experiments, however, suggest that trust and reciprocity may be lower or absent when the information is incomplete.We report a laboratory experiment with symmetric and asymmetric incomplete surplus information in a bilateral gift exchange setting.We find that trust and reciprocity have a significant positive effect on wages, effort and efficiency.But, all three are substantially lower under incomplete than under complete information.The negative impact on wages and efficiency is even greater with information asymmetry.incomplete information;industrial relations;trusts;efficiency

    Collusion under Yardstick Competition: An Experimental Study

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    The effectiveness of relative performance evaluation schemes, such as yardstick competition, can be undermined by collusion.The degree to which the regulated agents manage to collude will be affected by the particulars of the scheme.We hypothesize that in a repeated game setting schemes will be more prone to collusion the smaller are the rents to the agents in case they behave non-cooperatively.We illustrate the relevance of this hypothesis by means of an economic experiment in which we compare the efficiency of two performance evaluation schemes.performance evaluation;competition;efficiency;games;collusion;yardstick

    Collusion under yardstick competition:An experimental study

    Get PDF
    The effectiveness of relative performance evaluation schemes, such as yardstick competition, can be undermined by collusion.The degree to which the regulated agents manage to collude will be affected by the particulars of the scheme.We hypothesize that in a repeated game setting schemes will be more prone to collusion the smaller are the rents to the agents in case they behave non-cooperatively.We illustrate the relevance of this hypothesis by means of an economic experiment in which we compare the efficiency of two performance evaluation schemes
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