Monitoring by peers is often an effective means of attenuating incentive problems. Most explanations of the efficacy of mutual monitoring rely either on small group size or on a version of the Folk theorem with repeated interactions which requires reasonably accurate public information...

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....

Empirically, compensation systems generate substantial effort despite weak monetary incentives. We consider reciprocal motivations as a source of incentives. We solve for the optimal contract in the basic principal-agent problem and show that reciprocal motivations and explicit performance-based...

Der demographische Wandel stellt Unternehmen vor zentrale Herausforderungen: Die Belegschaften altern und ihre altersbezogene Heterogenität steigt. Bislang war unklar, ob und über welche Mechanismen der Umgang mit Beschäftigten unterschiedlicher Altersgruppen dazu beitragen kann, die...

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....

The workplace is complex, comprising many entities (abstract and tangible) - affective states, attitudes, and perceptions, but also workers and managers themselves and their behaviors. Understanding the link between them is vital for organizational prosperity. In the current paper, the...