INTRODUCTION ................................................................................... 158 I. MEASURING WIKIPEDIA’S SUCCESS ....................................... 159 II. THREATS TO WIKIPEDIA ......................................................... 161 III. WIKIPEDIA’S RESPONSE TO THE VANDAL AND SPAMMER THREATS ...........................................................................

This paper studies optimal relational contracts in motivating workers in a market setting. We find that labor markets with higher turnover costs will use more subjective performance pay and less efficiency wages and that in those markets, the total wage payment is lower and the equilibrium employment level is higher. Surprisingly, under certain conditions, an increase in turnover costs leads to...

We present a model in which unemployed workers simultaneously sample n potential employers. By varying n, we nest search and Walrasian-type models of the labor market. We show that low values of n yield typical search equilibria: the wages are dispersed below the marginal productivity of labor. Interestingly, as n exceeds a relatively small threshold, the Walrasian-type equilibrium emerges with...

This paper studies contract selection between efficiency wages and subjective performance pay to motivate workers in a market setting. The optimal wage contract (which may be a combination of efficiency wages and subjective performance pay) is determined by turnover costs in labor markets. Specifically, labor markets with higher turnover costs use more subjective performance pay and less effici...

Stockholm’s recognition of the combined contributions of Peter Diamond, Dale Mortensen, and Christopher Pissarides brought immense pleasure and satisfaction to the macro-labor research community. The DMP model honored by the prize is a central component of modern macroeconomics. Given the current high unemployment rates in most advanced economies, it seems natural to focus my remarks about the ...

We investigate how U.S. employment-based health insurance system a¤ects health care decisions. We stress that health is a form of human capital that a¤ects productivity on the job and we suggest that the current U.S. system might lead to an ine¢ cient low level of individual health due to employees’turnover. Turnover in frictional labor markets creates an externality that limits employer’and em...