Efficiency-wage competition and nonlinear dynamics

Guerrazzi, Marco; Sodini, Mauro

doi:10.1016/j.cnsns.2017.04.027

Cited by 3 publications

(9 citation statements)

References 37 publications

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“…The strategic implications of the wage setting behaviour of firms as well as the consequences triggered by an increase in the number of players, however, remain completely on the background (cf. Guerrazzi, 2013;Guerrazzi and Sodini, 2018). Although it did not reach any clear conclusion, these important aspects of the wage setting process have been somehow addressed by the most recent literature on wage competition.…”

Section: Related Literaturementioning

confidence: 93%

“…On the output side, following Guerrazzi and Sodini (2018) and Guerrazzi (2013), I assume that each productive unit -no matters the size of N -is endowed with the following production function:…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The underlying hypothesis is that an improvement (a deterioration) of external wage opportunities may have a negative (positive) effect on internal morale and working effectiveness (cf. Hahn, 1987;Summers, 1988;van de Klundert, 1988;Jellal and Wolff, 2003;Guerrazzi, 2013;Guerrazzi and Sodini, 2018). Strictly speaking, when the output competitors of firm i increase their wage offer, the i-th productive unit -unless it increases the wage paid to its employed workforce -is assumed to suffer a productivity drop.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…In the model economy described in section 2, a symmetric Nash equilibrium can be defined as a situation in which all the competing firms find profitable to bid and pay the same wage so that, alternatively, the expressions in eq.s ( 9) and ( 10) simultaneously holds for all the N productive units. As maintained by Guerrazzi (2013) and Guerrazzi and Sodini (2018), this means that the elasticity of the relevant effort function (incentive compatibility) with respect to the internal wage (effort) is equal to one for all the firms. In other words, in the symmetric Nash equilibrium the Solow condition is valid in a generalized manner throughout the economy (cf.…”

Section: Nash Equilibriummentioning

confidence: 99%

“…In previous works, such a strategic relationship for the optimal wage behaviour of firms has been dubbed as efficiency-wage competition, i.e., a situation in which the profit-maximizing wage bid of a given productive unit depends on the wage bids put forward by all the other firms operating in the economy (cf. Guerrazzi, 2013;Guerrazzi and Sodini, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Efficiency-Wage Competition: What Happens as the Number of Players Increases?

Guerrazzi

2019

Ital Econ J

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In this paper, I explore the consequences of extending the number of firms within an efficiency-wage competition setting by showing that the shape of the effort function is crucial in determining key features of the economy. Specifically, when workers are endowed with a concave (sigmoid) effort function, the wage behaviour of firms follows a collusive (competitive) pattern and the symmetric Nash equilibrium is unstable (stable). Moreover, when effort is concave (sigmoid), full employment is characterized by a labour exploitation that increases (decreases) together with the number of productive units required to sustain that allocation.These findings may have intriguing implications for the existence of involuntary unemployment as well as for policies aimed at increasing employment.

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Section: Related Literaturementioning

confidence: 93%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Nash Equilibriummentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Efficiency-Wage Competition: What Happens as the Number of Players Increases?

Guerrazzi

2019

Ital Econ J

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Chaotic Behaviour and Bifurcation in Real Dynamics of Two-Parameter Family of Functions including Logarithmic Map

Sajid

2020

Abstract and Applied Analysis

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The focus of this research work is to obtain the chaotic behaviour and bifurcation in the real dynamics of a newly proposed family of functions fλ,ax=x+1−λxlnax;x>0, depending on two parameters in one dimension, where assume that λ is a continuous positive real parameter and a is a discrete positive real parameter. This proposed family of functions is different from the existing families of functions in previous works which exhibits chaotic behaviour. Further, the dynamical properties of this family are analyzed theoretically and numerically as well as graphically. The real fixed points of functions fλ,ax are theoretically simulated, and the real periodic points are numerically computed. The stability of these fixed points and periodic points is discussed. By varying parameter values, the plots of bifurcation diagrams for the real dynamics of fλ,ax are shown. The existence of chaos in the dynamics of fλ,ax is explored by looking period-doubling in the bifurcation diagram, and chaos is to be quantified by determining positive Lyapunov exponents.

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Theory of Fair Wage Setting (TFWS)

2021

GJHSSR

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It has been more than two hundred years many theories related wage determination from supply-side (economics) and demand-side (industrial relation) have been introduced but all are criticized still, no satisfactory wage theory is introduced because markets do not work in reality as the theories assumed to be, on ground reality markets are segmented and complex, there are also many other factors beyond the supply and demand of labour, custom and culture that are determined and influence wages. TFWS matches with real world behaviour and human nature and contributes. To fill gaps this study aims to come out with a new theory name fair wage setting theory (TFWS). To achieve the objective, qualitative research is used while Semi-structured interviews were conducted by applying snowball sampling technique. Previous literature was also treated as a secondary data. This study reveals that, existing general wage determination and minimum wage criteria are the rooted issues that further creates problems like hours of work, union, debt behaviour, productivity and training, youth, taxes, pay settlements, benefits system, nature of non-compliance, employment, informality, income inequality or poverty gender pay gaps etc. To set the fair wage rate, role of timely paid wage, court of employee and employer and government involvement are compulsory. TFWS divided wage determination into parts which are “fix wage” that includes living cost on the economic level and other is the “variable wage” that includes employee contribution. TFWS is significant as it based on the real world. More present study contributes, socially, politically, ethically and economically on global level.

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Efficiency-wage competition and nonlinear dynamics

Cited by 3 publications

References 37 publications

Efficiency-Wage Competition: What Happens as the Number of Players Increases?

Efficiency-Wage Competition: What Happens as the Number of Players Increases?

Chaotic Behaviour and Bifurcation in Real Dynamics of Two-Parameter Family of Functions including Logarithmic Map

Theory of Fair Wage Setting (TFWS)

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