Arbeitspapier
Managing wages: Fairness norms of low- and high-performing team members
Services are often provided by groups. The question of remuneration arises both at the group level and for each individual group member. We examine the question of how relative pay should be designed within the group if all group members are to regard the payment scheme as fair. We use a three-step laboratory experiment to compare which fairness norms are chosen by high-performing and low-performing group members. It turns out that both types of group members prefer the performance pay principle. Support for equal pay is negligible. However, the low performers use their bargaining power to improve their position, but without deviating from the performance principle substantially. A random influence on the performance of the players does not change the results.
- Language
-
Englisch
- Bibliographic citation
-
Series: arqus Discussion Paper ; No. 238
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Design of Experiments: Laboratory, Group Behavior
Personal Income, Wealth, and Their Distributions
Micro-Based Behavioral Economics: General‡
Wage Level and Structure; Wage Differentials
Personnel Economics: Compensation and Compensation Methods and Their Effects
- Subject
-
performance principle
fairness norms
relative remuneration
- Event
-
Geistige Schöpfung
- (who)
-
Fochmann, Martin
Sachs, Florian
Weimann, Joachim
- Event
-
Veröffentlichung
- (who)
-
Arbeitskreis Quantitative Steuerlehre (arqus)
- (where)
-
Berlin
- (when)
-
2019
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Fochmann, Martin
- Sachs, Florian
- Weimann, Joachim
- Arbeitskreis Quantitative Steuerlehre (arqus)
Time of origin
- 2019
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