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The Ethical Dimension of Wages: A Dynamic Environment for Revealing Attitudes


Patricio Madariaga


Universidad de Talca

Martin Schaffernicht


Universidad de Talca

December 30, 2008

Cuadernos de Economía, Vol. 27, No. 49, 2008

Abstract:     
Public debate has recently arisen in Chile regarding the ethical aspect of workers’ wages. Can it be that firms can pay better wages, but choose not to? There may be a difference between the marginal contribution of the worker and the wage, in which case the will of the employer comes into play - the ethical dimension. A simulation game is developed that leads the participants to reveal their responses in an environment of dynamic decision-making. The design and indications of the first experiments with university students are presented. It was found that behavior may be more selfish than discourse, and an analogy to the “ultimatum game” is suggested.

Number of Pages in PDF File: 24

Keywords: wage policy, ethics, experimentation, game theory

JEL Classification: D300, D630, D640

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Date posted: January 14, 2010  

Suggested Citation

Madariaga, Patricio and Schaffernicht, Martin , The Ethical Dimension of Wages: A Dynamic Environment for Revealing Attitudes (December 30, 2008). Cuadernos de Economía, Vol. 27, No. 49, 2008. Available at SSRN: http://ssrn.com/abstract=1535528

Contact Information

Patricio Madariaga (Contact Author)
Universidad de Talca ( email )
Talca, 200554
Chile
HOME PAGE: http://www.utalca.cl/link.cgi/
Martin Schaffernicht
Universidad de Talca ( email )
Talca, 200554
Chile
HOME PAGE: http://www.utalca.cl/link.cgi/
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