Should firms allow workers to choose their own wage?

Artikel

Economists typically predict that people are inherently selfish; however, experimental evidence suggests that this is often not the case. In particular, delegating a choice (such as a wage) to the performing party may imbue this party with a sense of responsibility, leading to improved outcomes for both the delegating entity and the performing party. This strategy can be risky, as some people will still choose to act in a selfish manner, causing adverse consequences for productivity and earnings. An important issue to consider is therefore how to encourage a sense of responsibility in the performing party.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2016 ; Bonn: Institute for the Study of Labor (IZA)

Classification and Topics

• Classification: Wirtschaft ; Economic Methodology: Other ; Design of Experiments: Laboratory, Individual
• Subject: delegation ; responsibility ; social outcomes ; experimental evidence

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Charness, Gary
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2016

Further information

• DOI: doi:10.15185/izawol.223
• Handle: http://hdl.handle.net/10419/148448
• Last update: 10.03.2025, 11:43 AM CET