Competition and the Ratchet Effect

Nber Working Paper Series Competition and the Ratchet Effect

In labor markets, the ratchet effect refers to a situation where workers subject to performance pay choose to restrict their output, because they rationally anticipate that firms will respond to higher output levels by raising output requirements or cutting pay. We model this effect as a multi-period principal-agent problem with hidden information, and study its robustness to labor market compe...

The effect of fruit competition and leaf area on fruit size of strawberry

Examining the Moderating Effect of Industry Competition on Relationship between Privatization, Financial Performance and Using of Management Accounting Tools in TSE

In many countries, particularly developing countries, economic reforms, especially privatization, are considered as a strategic approach. The growth of the government decreases the competition in the market, and so, some fields should be privatized in order to create the competition.  By moving towards privatization and the changes in competition methods and the presentation of the World Trade,...

Complex Dynamics from Simple Cognition: the Primary Ratchet Effect in Animal Culture

It is often observed that human culture, unlike most other animal culture, is cumulative: human technology and behavior is more complex than any individual could invent in their own lifetime. Cumulative culture is often explained by appeal to a combination of high-fidelity social learning and innovation, the “ratchet effect.” What is often overlooked is that both human and other animal culture ...

Brownian ratchet in a thermal bath driven by Coulomb friction.

The rectification of unbiased fluctuations, also known as the ratchet effect, is normally obtained under statistical nonequilibrium conditions. Here we propose a new ratchet mechanism where a thermal bath solicits the random rotation of an asymmetric wheel, which is also subject to Coulomb friction due to solid-on-solid contacts. Numerical simulations and analytical calculations demonstrate a n...