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What Are Efficiency Wages and Why Are They Important in Internal

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What are efficiency wages and why are they important in internal labor markets?


Definitions:

Exemplar Theory

A psychological theory suggesting that people make judgments about objects or concepts based on comparisons with instances of those categories that they have encountered in the past.

Prototype Theory

is a model of categorization in cognitive science, where members of a category are assessed by their resemblance to a typical member or prototype of that category.

Schema Theory

A theory of attention that claims unattended information is never perceived.

Knowledge-based Theory

A theory suggesting that organizations rely on their knowledge and expertise to create competitive advantage and innovate.

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