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Social interaction, co-worker altruism, and incentives

Listed author(s):
  • Dur, Robert
  • Sol, Joeri

Social interaction with colleagues is an important job attribute for many workers. To attract and retain workers, managers therefore need to think about how to create and preserve high-quality co-worker relationships. This paper develops a principal-multi-agent model where agents do not only engage in productive activities, but also in social interaction with their colleagues, which in turn creates co-worker altruism. We study how financial incentives for productive activities can improve or damage the work climate. We show that both team incentives and relative incentives can help to create a good work climate.

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File URL: http://www.sciencedirect.com/science/article/pii/S0899-8256(09)00208-5
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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 69 (2010)
Issue (Month): 2 (July)
Pages: 293-301

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Handle: RePEc:eee:gamebe:v:69:y:2010:i:2:p:293-301
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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