Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/56587
Authors: 
Jerger, Jürgen
Michaelis, Jochen
Year of Publication: 
2010
Series/Report no.: 
Joint discussion paper series in economics 13-2010
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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