Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/56587 
Year of Publication: 
2010
Series/Report no.: 
MAGKS Joint Discussion Paper Series in Economics No. 13-2010
Publisher: 
Philipps-University Marburg, Faculty of Business Administration and Economics, Marburg
Abstract: 
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 'plausible' constraints are not generally acceptable to both firms and unions.
Subjects: 
profit sharing
share economy
remuneration systems
JEL: 
E24
J33
Document Type: 
Working Paper

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