All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Myrna Wooders and Edward Cartwright
 
''On the theory of equalizing differences Increasing abundances of types of workers may increase their earnings''
( 2001, Vol. 4 No.4 )
 
 
The theory of equalising differences recognises that wage differentials may be required to equalise the attractiveness of alternative occupations. We examine this theory using the Conley/Wooders 'crowding types'' model. The crowding types model distinguishes between the tastes of a player and his crowding type, those attributes of the player that directly effect the well-being of other players in the same club - a player''s skill, productivity or personality are examples. A club can be interpreted as firm in which the job attributes are the club goods thus, the crowding types model, with its distinction between tastes and crowding types, provides a natural environment in which to study equalising differences. In contrast to results for earlier models, we demonstrate that even when small groups of players are strictly effective in a strong sense, an increase in the abundance of players of one crowding type can increase the core payoffs to players of that crowding type.
 
 
Keywords: cooperative game theory
JEL: D4 - Market Structure and Pricing: General
C7 - Game Theory and Bargaining Theory:General
 
Manuscript Received : May 07 2001 Manuscript Accepted : May 08 2001

  This abstract has been downloaded 795 times                The Full PDF of this paper has been downloaded 87716 times