convinced that their manager cares for them. Managers can signal their altruistic feelings towards their employees in two ways … altruistic managers may offer lower wages and nevertheless build up better social-exchange relationships with their employees … than egoistic managers do. In such equilibria, a low wage signals to employees that the manager has something else to offer …

managers. Employment relations can be either tough (where workers are monitored intensively and obtain few rents, and managers … workplace favor exchange). Both workers and managers also exert effort in providing community benefits. The threat of losing … access to community benefits can motivate managers to keep employment soft; conversely, the threat of losing future …

moral hazard setting where agents with heterogeneous reciprocal preferences based on Self-Determination Theory as proposed … the workers’ preferences for managers are only based on the size of the offered share of output but not on the type of … employer. In the competition subsection, I focus on managers’ preference for the favored reciprocal workers to investigate its …