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 …

This paper investigates an implication of the self-serving bias for reciprocalresponses. It is hypothesized that … with the explanation offered by the self-serving bias. …