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
Recommended Citation
Small, Douglas, "Gift Exchange with Firm Performance Adjustments: Behavior in Random-Assignment, Perfect Labor Supply Setting" (2016). Senior Independent Study Theses. Paper 7030.
https://openworks.wooster.edu/independentstudy/7030
Disciplines
Behavioral Economics
Keywords
Gift Exchange
Publication Date
2016
Degree Granted
Bachelor of Arts
Document Type
Senior Independent Study Thesis
© Copyright 2016 Douglas Small