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We develop a model of manager-employee relationships where employees care more for their manager when they are more convinced that their manager cares for them. Managers can signal their altruistic feelings towards their employees in two ways: by offering a generous wage and by giving attention....
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neither. We show that two types of signalling equilibria are possible. Both are characterised by dispersion and Pareto …
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increasing in quality and the quality of each firm’s product is private information (not known to consumers or to other firms … close to full information monopoly level) while others are more “competitive”. Under certain conditions, if the number of … firms is large enough, information is revealed in every equilibrium. …
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One of the main findings of a large body of gift exchange experiments is that in an incomplete contracts environment workers on average do not shirk and usually provide more than the minimum enforceable effort level. In general, 40 to 60 percent of the workers reward higher wages with higher...
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Numerous gift exchange experiments have found a positive relationship between employers' wage offers and workers' effort levels. In (almost) all these experiments the employer both owns and controls the firm. Yet in reality many firms are characterized by the separation of ownership and control....
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