Abstract
We examine the possibility that other regarding preferences may change in response to past observations. We use a repeated gift exchange game, (an experimental labor market), where an employer decides on a wage and an employee decides on an effort level. In our treatments, low or high wages are imposed by the computer for ten periods, followed by subject-determined wages for ten periods. We find that the computer-imposed wages affect subjects’ subsequent play in terms of both the wages offered and the wage-effort relationship.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Paper version not known
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
