Abstract

This study reports the results of a laboratory gift exchange game. The investigation focuses on worker perceptions of wage offers when they come from two different types of firm. Participants were assigned the role of either firms or workers. The two different types of firms were denoted as either being high or low performance. The firm performance differentiation indicated the amount of financial resources a firm had available when making wage offers. Findings suggest workers preferred offers from low performance firms, as they responded with higher effort levels to that type. Wages from low performance firms conveyed greater amounts of trust to workers, who responded with higher effort levels to wage offers when gift wages were offered.

Advisor

Mellizo, Philip

Department

Business Economics

Disciplines

Behavioral Economics

Publication Date

2016

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2016 Douglas Small