Efficiency Wages and Negotiated Profit-Sharing under Uncertainty

Equilibrium unemployment under negotiated profit sharing

We study employment, employee effort, wages and profit sharing when firms face stochastic revenue shocks and when base wages and profit shares are determined through collective bargaining. The negotiated profit share depends positively on the relative bargaining power of the trade union and has effort-enhancing and wage-moderating effects. We show that higher profit sharing reduces equilibrium ...

Profit Sharing and Efficiency in Utility Games

We study utility games (Vetta, FOCS 2002) where a set of players join teams to produce social utility, and receive individual utility in the form of payments in return. These games have many natural applications in competitive settings such as labor markets, crowdsourcing, etc. The efficiency of such a game depends on the profit sharing mechanism – the rule that maps utility produced by the pla...

Steady State Unemployment Under Profit Sharing

Measuring robust overall profit efficiency with uncertainty in input and output price vectors

The classic overall profit needs precise information of inputs, outputs, inputs and outputs price vectors. In real word, all data are not certain. Therefore, in this case, stochastic and fuzzy methods use for measuring overall profit efficiency. These methods require more information about the data such as probability distribution function or data membership function, which in some cases may no...

Wages, Supervision and Sharing

We investigate the relationship between pay, supervision and employee sharing. Our results suggest an inverse relationship between supervision and pay across both sharing and non-sharing firms, although the trade-off is somewhat assuaged within the former. This would appear to contradict instrumental efficiency wage considerations, but could be rationalised within a gift-exchange context. In te...