@TechReport{iza:izadps:dp4532, author={Dur, Robert and Sol, Joeri}, title={Social Interaction, Co-Worker Altruism, and Incentives}, year={2009}, month={Oct}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={4532}, url={https://www.iza.org/publications/dp4532}, abstract={Social interaction with colleagues is an important job attribute for many workers. To attract and retain workers, managers therefore need to think about how to create and preserve high-quality co-worker relationships. This paper develops a principal-multi-agent model where agents do not only engage in productive activities, but also in social interaction with their colleagues, which in turn creates co-worker altruism. We study how financial incentives for productive activities can improve or damage the work climate. We show that both team incentives and relative incentives can help to create a good work climate.}, keywords={incentive contracts;altruism;social interaction;co-worker satisfaction}, }