%0 Report %A Dur, Robert %A Sol, Joeri %T Social Interaction, Co-Worker Altruism, and Incentives %D 2009 %8 2009 Oct %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 4532 %U https://www.iza.org/publications/dp4532 %X 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. %K incentive contracts %K altruism %K social interaction %K co-worker satisfaction