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


  • Spagnolo, Giancarlo

    (Department of Economics)


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".

Suggested Citation

  • Spagnolo, Giancarlo, 1995. "Social Relations in the Workplace: a "Linked Games" Approach," SSE/EFI Working Paper Series in Economics and Finance 76, Stockholm School of Economics.
  • Handle: RePEc:hhs:hastef:0076

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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.

    More about this item


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

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation


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