Economics at your fingertips  

L’autorité ne fait pas le contrat de travail: Une critique du modèle de Simon (1951)

Camille Chaserant ()

Cahiers d’économie politique / Papers in Political Economy, 2010, issue 58, 61-81

Abstract: Continental Law defines the employment contract by the “subordination” of the employee to the employer. Since Simon (1951), economics defines authority as the opportunity for the employer to postpone the selection of the tasks the employee should perform. These definitions do not fit. Using the framework of option pricing in order to interpret Simon’s model, this paper shows that the economic concept of the employment contract is a spot contract paired with a call option on the employee’s tasks. Therefore, the economic formalization of the employment contract does not implement what lawyers define as an employment relationship.

Keywords: authority; subordination; employment contract; option value; renegotiation (search for similar items in EconPapers)
JEL-codes: D86 K31 G12 J41 (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
142 rue du faubourg Saint-Martin. 75010 Paris, France.

Access Statistics for this article

Cahiers d’économie politique / Papers in Political Economy is currently edited by Claire Pignol

More articles in Cahiers d’économie politique / Papers in Political Economy from L'Harmattan
Bibliographic data for series maintained by Carlos Andrés Vasco Correa ().

Page updated 2020-12-16
Handle: RePEc:cpo:journl:y:2010:i:58:p:61-81