Reciprocity in Dynamic Employment Relationships

نویسندگان

چکیده

This paper analyzes a dynamic relational contract for employees with reciprocal preferences. A model of long-term employment relationship is developed that implies generous upfront wages activate the norm reciprocity and then are more important when an employee close to retirement. In earlier stages, direct incentives promising bonus in exchange effort effective. Hence, reciprocity-based reinforce each other should be used combination. Moreover, competitive labor market may increase utilization incentives. was accepted by Axel Ockenfels, behavioral economics decision analysis. Funding: work supported Hardegg’sche Stiftung, Deutsche Forschungsgemeinschaft [CRC TRR 190], Austrian Science Fund [Grant P 33307-G]. Supplemental Material: The online appendices available at https://doi.org/10.1287/mnsc.2022.4657 .

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ژورنال

عنوان ژورنال: Management Science

سال: 2023

ISSN: ['0025-1909', '1526-5501']

DOI: https://doi.org/10.1287/mnsc.2022.4657