Fairness and Learning in Multi-Employee Gift-Exchange Games: An Experimental Analysis
19 Pages Posted: 5 Nov 2011 Last revised: 22 Jan 2015
Date Written: January 21, 2015
We study the role of norm violations and learning behavior in multi- and single-worker gift-exchange games and find that working with co-workers leads to a twofold effect. First, flexible wages yield moderately higher efforts than in the single-employee treatment. The data suggests that this is caused by learning behavior of workers who realize that higher effort pays off and exert more effort than in the single worker case. Second, when wage discrimination is not possible, effort is crowded-out and is substantially smaller than in the single-employee treatment.
Keywords: Learning Behavior, Gift Exchange, Multi-Employees, Reciprocity
JEL Classification: C91, C92, J41
Suggested Citation: Suggested Citation