This paper studies how altruism between managers and employees affects relational incentive contracts. To this end we … develop a simple dynamic principal-agent model where both players may have feelings of altruism or spite toward each other … that altruism undermines the credibility of a threat of dismissal but strengthens the credibility of a bonus. Among others …

colleagues, which in turn creates co-worker altruism. We study how financial incentives for productive activities can improve or …

-selection and allocation decisions of agents who differ in altruism towards clients. When bureaucrats are paid flat wages, they do … of the altruism distribution. We also show how client composition affects sorting and why street-level bureaucrats often …