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- W3123069530 abstract "Studies of gift exchange have focused on employees’ provision of effort to reciprocate good wages, but other avenues of reciprocation exist. We study a natural alternative, the use of verbal rewards and punishments, by altering a bilateral gift exchange game so that employees can send messages as well as setting an effort level after observing the wage set by their employer. A simple model of fairness, reciprocity, and communication, similar to the model of Cox, Friedman, and Gjerstad (2007), predicts that allowing messages should lead to lower effort, controlling for wages, and higher wages. In reality effort is virtually unaffected by allowing messages but wages are dramatically increased. This effect occurs because employees give their employers advice to set higher wages. Since the profit maximizing wage is relatively high, employers who follow such advice do well and learn to use higher wages." @default.
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- W3123069530 date "2011-01-01" @default.
- W3123069530 modified "2023-09-27" @default.
- W3123069530 title "The Gift of Advice: Communication in a Bilateral Gift Exchange Game" @default.
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- W3123069530 doi "https://doi.org/10.2139/ssrn.1788262" @default.
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