Incomplete Information Erodes Trust and Wages in Labor Relationships
This research looked at how workers respond to different levels of information about the value they provide at work. When workers have limited or one-sided info about their worth, trust and cooperation can drop. In a lab experiment mimicking real-world situations, the study found that when workers don't know the full picture, they tend to be less motivated and efficient. Moreover, when the information was lopsided - where one side knows more than the other - things got even worse for both pay and work quality. These findings stress the importance of open communication and fair sharing of information in work environments to keep motivation and efficiency high.