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Social Relations in the Workplace: a "Linked Games" Approach

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Author Info

  • Spagnolo, Giancarlo

    (Department of Economics)

Abstract

The paper analyses how cooperation in a repeated social game may help to sustain cooperation in a "linked" repeated production game. We show that this may happen a)because of available "social capital", defined as the slack of punishment power present in the social repeated game, b) because, when agents' utility function is strictly concave in the outcome of the two games, a simultaneous punishment in the linked games turns out to be a stronger threat than the sum of the independent punishments in the two component games, and c) because the linkage between two repeated games may generate transfers of "trust".

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 76.

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Length: 31 pages
Date of creation: Oct 1995
Date of revision:
Publication status: Published in Journal of Economic Behavior and Organization, 1999, pages 1-25.
Handle: RePEc:hhs:hastef:0076

Contact details of provider:
Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
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Web page: http://www.hhs.se/
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Related research

Keywords: Social capital; social relations; employment relation; peer pressure; work norms;

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Cited by:
  1. Spagnolo, Giancarlo, 1999. "Social relations and cooperation in organizations," Journal of Economic Behavior & Organization, Elsevier, vol. 38(1), pages 1-25, January.

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