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01-04-2013 | Focus

An uncertain price discrimination model in labor market

Authors: Guoli Wang, Wansheng Tang, Ruiqing Zhao

Published in: Soft Computing | Issue 4/2013

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Abstract

This paper investigates an uncertain price discrimination problem in labor market, in which the employee’s capability is his/her private information and characterized as an uncertain variable. To maximize the employer’s welfare, an uncertain price discrimination model in labor market is established. Moreover, a crisp equivalent form of the model is given, and the analytic solution is therefore obtained by employing variational method. This optimal solution shows that both the productivity and the wage are increasing with respect to the employee’s capability.

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Title: An uncertain price discrimination model in labor market
Authors: Guoli Wang
Wansheng Tang
Ruiqing Zhao
Publication date: 01-04-2013
Publisher: Springer-Verlag
Published in: Soft Computing / Issue 4/2013
Print ISSN: 1432-7643
Electronic ISSN: 1433-7479
DOI: https://doi.org/10.1007/s00500-012-0933-2

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