Categories
Labor Market Structures

Curbside Pickup

Cloud 9 is offering curbside pickup so that their lazier customers can have a better shopping experience. Monopolistically competitive firms often compete on non-price aspects, so offering curbside pickup may entice new customers to increase their demand. Since they aren’t hiring more workers, the employees are now required to work more, which they don’t see as fair. This increased demand following curbside pickup should result in an increased demand for labor, but the workers only seem to be working more.

Categories
Labor Unemployment

Quitting on Day 1

Bo wants to make $5,000 and then quit his new job, and he thinks he can do that in a week. When he finds out that it’s going to take significantly longer, he begins complaining about how little the store pays for the work he’s doing. He believes his marginal revenue product is significantly higher, but he doesn’t realize that his marginal impact on revenue is actually quite small. His role at the store could easily be automated.

Categories
Labor Principles

Pizza Party as an Incentive

Each year the store participates in a competition that divides the employees between two teams to see which team can sell the most during the day. Glenn announces that the winning team will receive a pizza party. While the employees aren’t overly happy about either the competition or the pizza party, incentives can usually be a way to induce higher levels of productivity. It turns out that each team member on the winning team also receives $100, but Glenn was saving it as a surprise incentive. Amy has to explain to Glenn that incentives need to be announced at the beginning in order for them to actually work.

Categories
Labor Principles

Determining Shift Assignments

Amy asks Garett to finish the shift assignments, but he’d rather finish eating his lunch. Mateo jumps at the opportunity to make shift assignments and provide retribution for wrongs that have been done.

Categories
Labor Principles

Surprise Incentives

Each year employees participate in Color Wars, where the employees are divided between two teams to see which team can sell the most during the day. Glenn announces that the winning team will receive a pizza party. While the employees aren’t overly happy about either the Color Wars or the pizza party, incentives can usually be a way to induce higher levels of productivity. It turns out that each team member also receives $100, but Glenn was saving it as a surprise incentive. Amy has to explain to him that incentives need to be announced at the beginning in order for them to actually work.