Reciprocity in Dynamic Employment Relationships

Published Online:https://doi.org/10.1287/mnsc.2022.4657

References

  • Abreu D (1988) On the theory of infinitely repeated games with discounting. Econometrica 56(2):383–396.CrossrefGoogle Scholar
  • Ahammer A, Fahn M, Stiftinger F (2022) Outside options and worker motivation. Working paper, Johannes Kepler University Linz, Linz, Austria.Google Scholar
  • Akerlof GA (1982) Labor contracts as partial gift exchange. Quart. J. Econom. 97(4):543–569.CrossrefGoogle Scholar
  • Al-Ubaydli O, Andersen S, Gneezy U, List JA (2015) Carrots that look like sticks: Toward an understanding of multitasking incentive schemes. Southern Econom. J. 81(3):538–561.CrossrefGoogle Scholar
  • Altmann S, Falk A, Grunewald A, Huffman D (2013) Contractual incompleteness, unemployment, and labour market segmentation. Rev. Econom. Stud. 81(1):30–56.CrossrefGoogle Scholar
  • Bernheim BD, Rangel A (2004) Addiction and cue-triggered decision processes. Amer. Econom. Rev. 94(5):1558–1590.CrossrefGoogle Scholar
  • Bewley TF (1999) Why Wages Don’t Fall During a Recession (Harvard University Press, Cambridge, MA).CrossrefGoogle Scholar
  • Bolton GE, Ockenfels A (2000) Erc: A theory of equity, reciprocity, and competition. Amer. Econom. Rev. 90(1):166–193.CrossrefGoogle Scholar
  • Bolton GE, Ockenfels A (2005) A stress test of fairness measures in models of social utility. Econom. Theory 25(4):957–982.CrossrefGoogle Scholar
  • Bolton GE, Brandts J, Ockenfels A (1998) Measuring motivations for the reciprocal responses observed in a simple dilemma game. Experiment. Econom. 1(3):207–219.CrossrefGoogle Scholar
  • Bolton GE, Brandts J, Katok E, Ockenfels A, Zwick R (2008) Testing theories of other-regarding behavior: A sequence of four laboratory studies. Handbook of Experimental Economics Results, vol. 1 (Elsevier, New York), 488–499.CrossrefGoogle Scholar
  • Boosey L, Goerg S (2020) The timing of discretionary bonuses: Effort, signals, and reciprocity. Games Econom. Behav. 124:254–280.CrossrefGoogle Scholar
  • Brown M, Falk A, Fehr E (2004) Relational contracts and the nature of market interactions. Econometrica 72(3):747–780.CrossrefGoogle Scholar
  • Camerer C, Weber R (2013) Experimental organizational economics. Gibbons R, Roberts J, eds. The Handbook of Organizational Economics (Princeton University Press, Princeton, NJ), 213–262.CrossrefGoogle Scholar
  • Chen Y, Cramton P, List JA, Ockenfels A (2021) Market design, human behavior, and management. Management Sci. 67(9):5317–5348.LinkGoogle Scholar
  • Cho I-K, Kreps DM (1987) Signaling games and stable equilibria. Quart. J. Econom. 102(2):179–221.CrossrefGoogle Scholar
  • Cox JC, Friedman D, Gjerstad S (2007) A tractable model of reciprocity and fairness. Games Econom. Behav. 59(1):17–45.CrossrefGoogle Scholar
  • Cox JC, Friedman D, Sadiraj V (2008) Revealed altruism. Econometrica 76(1):31–69.CrossrefGoogle Scholar
  • Danilov A, Sliwka D (2017) Can contracts signal social norms? Experimental evidence. Management Sci. 63(2):459–476.LinkGoogle Scholar
  • DellaVigna S, Pope D (2018) What motivates effort? Evidence and expert forecasts. Rev. Econom. Stud. 85(2):1029–1069.CrossrefGoogle Scholar
  • DellaVigna S, List JA, Malmendier U, Rao G (2022) Estimating social preferences and gift exchange at work. Amer. Econom. Rev. 112(3):1038–1074.CrossrefGoogle Scholar
  • Dohmen T, Falk A, Huffman D, Sunde U (2009) Homo reciprocans: Survey evidence on behavioural outcomes. Econom. J. 119(536):592–612.Google Scholar
  • Dufwenberg M, Kirchsteiger G (2004) A theory of sequential reciprocity. Games Econom. Behav. 47(2):268–298.CrossrefGoogle Scholar
  • Dufwenberg M, Heidhues P, Kirchsteiger G, Riedel F, Sobel J (2011) Other-regarding preferences in general equilibrium. Rev. Econom. Stud. 78(2):613–639.CrossrefGoogle Scholar
  • Dur R, Tichem J (2015) Altruism and relational incentives in the workplace. J. Econom. Management Strategy 24(3):485–500.CrossrefGoogle Scholar
  • Englmaier F, Leider S (2012) Contractual and organizational structure with reciprocal agents. Amer. Econom. J. Microeconom. 4(2):146–183.CrossrefGoogle Scholar
  • Fahn M, Hakenes H (2019) Teamwork as a self-disciplining device. Amer. Econom. J. Microeconom. 11(4):1–32.CrossrefGoogle Scholar
  • Fahn M, Klein N (2019) Relational contracts with private information on the future value of the relationship: The upside of implicit downsizing costs. Amer. Econom. J. Microeconom. 11(4):33–58.CrossrefGoogle Scholar
  • Fahn M, Zanarone G (2022) Transparency in relational contracts. Strategic Management J. 43(5):1046–1071.CrossrefGoogle Scholar
  • Fahn M, Schade A, Schuessler K (2017) What drives reciprocal behavior? The optimal provision of incentives over the course of careers. Working paper, CESifo, Munich.Google Scholar
  • Falk A, Fischbacher U (2006) A theory of reciprocity. Games Econom. Behav. 54(2):293–315.CrossrefGoogle Scholar
  • Falk A, Fehr E, Fischbacher U (2008) Testing theories of fairness: Intentions matter. Games Econom. Behav. 62(1):287–303.CrossrefGoogle Scholar
  • Falk A, Gächter S, Kovács J (1999) Intrinsic motivation and extrinsic incentives in a repeated game with incomplete contracts. J. Econom. Psych. 20(3):251–284.CrossrefGoogle Scholar
  • Fehr E, Fischbacher U (2002) Why social preferences matter: The impact of non-selfish motives on competition, cooperation and incentives. Econom. J. 112(478):C1–C33.Google Scholar
  • Fehr E, Schmidt KM (1999) A theory of fairness, competition, and cooperation. Quart. J. Econom. 114(3):817–868.CrossrefGoogle Scholar
  • Fehr E, Brown M, Zehnder C (2009a) On reputation: A microfoundation of contract enforcement and price rigidity. Econom. J. (London) 119(536):333–353.Google Scholar
  • Fehr E, Goette L, Zehnder C (2009b) A behavioral account of the labor market: The role of fairness concerns. Annu. Rev. Econom. 1(1):355–384.CrossrefGoogle Scholar
  • Fehr E, Kirchsteiger G, Riedl A (1993) Does fairness prevent market clearing? An experimental investigation. Quart. J. Econom. 108(2):437–459.CrossrefGoogle Scholar
  • Fehr E, Kirchsteiger G, Riedl A (1998) Gift exchange and reciprocity in competitive experimental markets. Eur. Econom. Rev. 42(1):1–34.CrossrefGoogle Scholar
  • Fong Y-f, Li J (2017) Relational contracts, limited liability, and employment dynamics. J. Econom. Theory 169:270–293.CrossrefGoogle Scholar
  • Frederiksen A, Lange F, Kriechel B (2017) Subjective performance evaluations and employee careers. J. Econom. Behav. Organ. 134:408–429.CrossrefGoogle Scholar
  • Gibbons R, Henderson R (2012) What do managers do? Exploring Persistent Performance Differences Among Seemingly Similar Enterprises (Princeton University Press, Princeton, NJ), 680–731.Google Scholar
  • Gibbons R, Murphy KJ (1992) Optimal incentive contracts in the presence of career concerns: Theory and evidence. J. Political Econom. 100(3):468–505.CrossrefGoogle Scholar
  • Haltiwanger JC, Lane JI, Spletzer JR (1999) Productivity differences across employers: The roles of employer size, age, and human capital. Amer. Econom. Rev. 89(2):94–98.CrossrefGoogle Scholar
  • Kampkötter P, Sliwka D (2016) On the complementary use of experiments and field data to evaluate management practices: The case of subjective performance evaluations. J. Inst. Theoretical Econom. 172(2):364–389.CrossrefGoogle Scholar
  • Kessler JB, Leider S (2012) Norms and contracting. Management Sci. 58(1):62–77.LinkGoogle Scholar
  • Kimbrough EO, Vostroknutov A (2016) Norms make preferences social. J. Eur. Econom. Assoc. 14(3):608–638.CrossrefGoogle Scholar
  • Kölle F, Quercia S, Tripodi E (2020) Social preferences under the shadow of the future. Preprint, submitted December 31, http://dx.doi.org/10.2139/ssrn.3622125.Google Scholar
  • Kragl J, Schmid J (2009) The impact of envy on relational employment contracts. J. Econom. Behav. Organ. 72(2):766–779.CrossrefGoogle Scholar
  • Kreps D, Milgrom P, Roberts J, Wilson R (1982) Rational cooperation in the finitely repeated prisoners’ dilemma. J. Econom. Theory 27(2):245–252.CrossrefGoogle Scholar
  • Krupka EL, Leider S, Jiang M (2017) A meeting of the minds: Informal agreements and social norms. Management Sci. 63(6):1708–1729.LinkGoogle Scholar
  • Lallemand T, Rycx F (2009) Are young and old workers harmful for firm productivity? Working paper, Universite Libre de Bruxelles, Brussels.Google Scholar
  • Lazear EP, Shaw KL, Stanton C (2016) Making do with less: Working harder during recessions. J. Labor Econom. 34(S1):S333–S360.CrossrefGoogle Scholar
  • Levin J (2003) Relational incentive contracts. Amer. Econom. Rev. 93(3):835–857.CrossrefGoogle Scholar
  • MacLeod WB (2007) Can contract theory explain social preferences? Amer. Econom. Rev. 97(2):187–192.CrossrefGoogle Scholar
  • MacLeod WB, Malcomson JM (1989) Implicit contracts, incentive compatibility, and involuntary unemployment. Econometrica 57(2):447–480.CrossrefGoogle Scholar
  • MacLeod WB, Valle Lara V, Zehnder C (2020) Worker empowerment and subjective evaluation: On building an effective conflict culture. NBER Working paper No. 27857, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Macneil IR (1980) The New Social Contract (Yale University Press, New Haven, CT).Google Scholar
  • Macneil IR (1983) Values in contract: Internal and external. Northwestern Univ. Law Rev. 78:340–418.Google Scholar
  • Mailath GJ, Samuelson L (2006) Repeated Games and Reputations: Long-Run Relationships (Oxford University Press, Oxford, United Kingdom).CrossrefGoogle Scholar
  • Malcomson JM (2013) Relational incentive contracts. Gibbons R, Roberts J, eds. The Handbook of Organizational Economics (Princeton University Press, Princeton, NJ), 1014–1065.CrossrefGoogle Scholar
  • Malmendier U, Schmidt KM (2017) You owe me. Amer. Econom. Rev. 107(2):493–526.CrossrefGoogle Scholar
  • Peysakhovich A, Rand DG (2016) Habits of virtue: Creating norms of cooperation and defection in the laboratory. Management Sci. 62(3):631–647.LinkGoogle Scholar
  • Prendergast C (1999) The provision of incentives in firms. J. Econom. Literature 37(1):7–63.CrossrefGoogle Scholar
  • Rabin M (1993) Incorporating fairness into game theory and economics. Amer. Econom. Rev. 83(5):1281–1302.Google Scholar
  • Schmidt KM (2011) Social preferences and competition. J. Money Credit Banking 43(1):207–231.CrossrefGoogle Scholar
  • Shapiro C, Stiglitz JE (1984) Equilibrium unemployment as a worker discipline device. Amer. Econom. Rev. 74(3):433–444.Google Scholar
  • Skirbekk V (2004) Age and individual productivity: A literature survey. Vienna Yearbook Population Res. 2:133–153.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.