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 ”...

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Bibliographic Details

Published in:	MAGKS - Joint Discussion Paper Series in Economics (Band 13-2010)
Main Authors:	Jerger, Jürgen, Michaelis, Jochen
Format:	Work
Language:	English
Published:	Philipps-Universität Marburg 2010
Subjects:	Share Economy Remuneration Systems Wirtschaft Profit Sharing Economics
Online Access:	PDF Full Text
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