This paper explores how a relational contract establishes a norm of reciprocity and how such a norm shapes the provision of informal incentives. Developing a model of a long-term employment relationship, I show that generous upfront wages that activate the norm of reciprocity are more important...

This paper explores the optimal provision of dynamic incentives for employees with reciprocal preferences. Building on the presumption that a relational contract can establish a norm of reciprocity, I show that generous upfront wages that activate an employee’s reciprocal preferences are more...

Introduction: The French “Exception” -- The “Reform of Work ”and the Evolution of Participative Management in France -- A Decade of Technological Moderization: Negotiation and Organizational Change During the 1980s -- Toward Quality and Process Redesign: The ‘Lean’ Revolution in...