Jürgen Jerger, Jürgen Jerger; Michaelis, Jochen - Institut für Ost- und Südosteuropaforschung (IOS) - 2010
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...