Size doesn't matter! Gift exchange in experimental labor markets

Jordi Brandts, Klarita Gërxhani, Arthur Schram and Jolanda Ygosse-Battisti
Authors registered in the RePEc Author Service: Jolanda Eline Ygosse Battisti ()

Journal of Economic Behavior & Organization, 2010, vol. 76, issue 3, 544-548

Abstract: We study how the number of traders affects the interaction between a centralized exchange and bilateral negotiations in an experimental labor market with excess supply and incomplete contracts. Our large markets are three times as large as our small markets. In bilateral negotiations firms obtain information about employees' performance in previous jobs. Though market forces put a downward pressure on wages in large markets, reciprocal tendencies do not differ. Hence, the occurrence of bilateral negotiations increases overall efficiency for both market sizes.

Keywords: Worker; recruitment; Gift; exchange; Experiments; Market; size (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (7)

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Working Paper: Size Doesn't Matter! Gift Exchange in Experimental Labor Markets (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:76:y:2010:i:3:p:544-548

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