The fixed wage puzzle: Why profit sharing is so hard to implement

It is well known that profit sharing arrangements Pareto-dominate fixed wage contracts. Share agreements are (far) less than ubiquitous, however. This paper offers a solution of this fixed wage puzzle by adopting a perspective of bounded rationality. We show that share arrangements that fulfill plausible constraints are not generally acceptable to both firms and unions.

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Year of publication:	2010
Authors:	Jerger, Jürgen ; Michaelis, Jochen
Publisher:	Regensburg : Osteuropa-Institut Regensburg
Subject:	Lohnbildung \| Erfolgsbeteiligung \| Lohnverhandlungen \| Beschränkte Rationalität \| Theorie

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Series:	Arbeiten aus dem Osteuropa-Institut Regensburg ; 283
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
ISBN:	978-3-938980-32-3
Other identifiers:	625798899 [GVK] hdl:10419/57816 [Handle] RePEc:ost:wpaper:283 [RePEc]
Source:	EconStor

Persistent link: https://www.econbiz.de/10010281905