Managers often face the choice between promoting an internal employee and hiring an external candidate. Using an incentivized experiment, we examine managers’ promote/hire decision and employees’ behavior before and after that decision in a setting in which the external candidate has...

This Article rejects arguments by Christian leaders, scholars, and others who lament the secularization of the West and urge Christian dignity as the foundation of universal human rights. It argues instead that only a secular conception of dignity free of Christian metaphysics can create an...

Decision making under uncertainty depends not only on the likelihoods but also on the sources of uncertainty in terms of the degree of ambiguity, competence, and familiarity. This study goes beyond valuation experiments to examine the source dependence in the setting of gift exchange. We...

A sizable proportion of individuals act reciprocally. They punish and reward depending on the (un)kindness of those with whom they interact. In this paper, I explore whether individuals still reciprocate intentions when others lack full control over the consequences of their actions. By means of...

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....

We study the impact of reputational incentives in markets characterized by moral hazard problems. Social preferences have been shown to enhance contract enforcement in these markets, while at the same time generating considerable wage and price rigidity. Reputation powerfully amplifies the...

We investigate the effects of pay comparison information (i.e. information about what co-workers earn) and effort comparison information (information about how co-workers perform) in experimental firms composed of one employer and two employees. Exposure to pay comparison information in...

Why do people engage in costly cooperation with unknown others that they will never meet again? Answers to this evolutionary puzzle emphasize the role of indirect reciprocity (i.e., cooperation through reputation), whereby cooperation is not reciprocated by the recipient but by other members of...

We derive, compare, and test the predictions of three models of gift exchange: Classical (CGE); Augmented (AGE) based on unexpected wage surprises and first order beliefs; and Belief-based (BGE) that uses second order beliefs to formally model guilt-aversion. Motivated by Akerlof (1982), we also...

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...