What’s in a Job? Job Design in the Retail Grocery Business: An Empirical Analysis

What motivates an employee to work hard? If you ask an economist, the answer is self-interest. Work is only a means to an end and an employee will exert higher effort only to the extent that the monetary compensation for it is sufficiently attractive. If you ask a behavioral theorist, the answer is that work itself is fulfilling. Having a stimulating work environment with job … [ Read more ]

A Surprise in the Price of Knowledge

Two commonplace business assumptions are that lower quality products must attract buyers with lower prices, and that firms enjoy higher profits in a monopoly than in a competitive market. But information is not a commonplace product. So, should information providers with a low-quality product offer price discounts and fear competition? In this paper, Markus Christen and Miklos Sarvary present evidence that prices for reliable information … [ Read more ]