Question
Two players: The employee (Raquel) and the employer (Vera). Raquel has to choose whether to pursue training that costs 1, 000 to herself or not.
Two players: The employee (Raquel) and the employer (Vera). Raquel has to choose whether to pursue training that costs 1, 000 to herself or not. Vera has to decide whether to pay a fixed wage of 10, 000 to Raquel or share the revenues of the enterprise 50:50 with Raquel. The output is positively affected by both training and revenue sharing. Indeed, with no training and a fixed wage total output is 20, 000, while if either training or profit sharing is implemented the output rises to 22, 000. If both training and revenue sharing are implemented the output is 25, 000.
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