There has been recent experimental support for efficiency wage theories of the labor market. This short paper initiates the larger process of evaluating the boundary conditions of the gift-exchange phenomenon. In particular, we will see whether behavior consistent with the fair wage-effort hypothesis can emerge and be sustained under conditions in which there is (i) a nontrivial marginal cost to providing effort and (ii) increased social distance between subject and experimenter.
|Original language||English (US)|
|Number of pages||4|
|Journal||Proceedings of the National Academy of Sciences of the United States of America|
|State||Published - Oct 1 2002|
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