Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics

Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics

Equity and Efficiency in Multi-Worker Firms: Insights from Experimental Economics In this paper, we discuss recent evidence from economic experiments that study the impact of social preferences on workplace behavior. We focus on situations in which a single employer interacts with multiple employees. Traditionally, equity and efficiency have been seen as opposing aims in such work environments:...

Search with multi-worker firms

We present a generalization of the standard random-search model of unemployment in which firms hire multiple workers and in which the hiring process is timeconsuming as well as costly. We follow Stole and Zwiebel (1996a, 1996b) and assume that wages are determined by continuous bargaining between the firm and its employees. The model generates a nontrivial dispersion of firm sizes; when firms’ ...

Rationality and Commitment in Voluntary Cooperation: Insights from Experimental Economics

Health economics, equity, and efficiency: are we almost there?

Health care is a highly complex, dynamic, and creative sector of the economy. While health economics has to continue its efforts to improve its methods and tools to better inform decisions, the application needs to be aligned with the insights and models of other social sciences disciplines. Decisions may be guided by four concept models based on ethical and distributive justice: libertarian, c...

Wages and Employment Persistence with Multi-worker Firms

We present a generalization of the standard random-search model of unemployment in which firms hire multiple workers and in which the hiring process is time-consuming as well as costly. We follow Stole and Zwiebel (1996a,b) and assume that wages are determined by continuous bargaining between the firm and its employees. This generates a non-trivial dispersion of firm sizes; when firms’ producti...