Reciprocity and wage undercutting

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Reciprocity and Wage Undercutting*

It is well-documented that employers refuse to hire workers who offer their services at less than the prevailing wage. The received explanation is that workers are motivated by reciprocity they desire to reward kindness and punish hostility. To refuse an outsider’s under-bid is viewed as a kind choice that is met with good effort; a low wage is viewed as an insult that is met with shirking. We...

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Undercutting in Argumentation Systems

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ژورنال

عنوان ژورنال: European Economic Review

سال: 2000

ISSN: 0014-2921

DOI: 10.1016/s0014-2921(99)00047-1