Matutes, Carmen; Regibeau, Pierre; Rockett, Katharine - In: Journal of Economics & Management Strategy 3 (1994) 2, pp. 325-53
We investigate the choice of compensation scheme by firms. Our basic model shows that the unique equilibrium choice for profit maximizing duopsonists in a labor market is for one firm to offer a wage rate and for the other to offer a piece rate. this result arises because the firms recognize...