Size doesn't matter!: gift exchange in experimental labor markets
| Authors |
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|---|---|
| Publication date | 2009 |
| Series | CREED working paper series, 2009 |
| Number of pages | 7 |
| Publisher | Amsterdam: Faculteit Economie en Bedrijfskunde |
| Organisations |
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| Abstract |
We study how the number of traders affects the interaction between a centralized exchange and bilateral negotiations in an experimental labor market with excess supply and incomplete contracts. In bilateral negotiations firms obtain information about employees’ performance in previous jobs. Though market forces put a downward pressure on wages in large markets, reciprocal tendencies do not differ. Hence, the occurrence of bilateral negotiations increases overall efficiency in both market sizes. |
| Document type | Report |
| Language | English |
| Published at | http://www1.fee.uva.nl/creed/pdffiles/Brazilnote.pdf |
| Downloads |
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(Final published version)
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