A model of hysteresis arising from social interaction within a firm
Rios, Luis A. and Rachinskii, Dmitrii and Cross, Rod (2017) A model of hysteresis arising from social interaction within a firm. Journal of Physics: Conference Series, 811 (1). 012011. ISSN 1742-6588 (https://doi.org/10.1088/1742-6596/811/1/012011)
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Abstract
This paper subscribes to the view that a key distinguishing feature of a firm is its social nature. We present a model in which hysteresis arises from the social interactions between employees. Employees have a simple response to incentives in the form of the pay available outside the firm relative to that available within the firm. Allowing for social interaction, whereby employees are influenced by the effort levels of fellow employees, leads to the distinctive effects, such as lazy relay responses to incentives, associated with hysteresis.
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Item type: Article ID code: 60551 Dates: DateEvent3 March 2017Published14 February 2017AcceptedSubjects: Social Sciences > Economic Theory Department: Strathclyde Business School > Economics Depositing user: Pure Administrator Date deposited: 27 Apr 2017 13:00 Last modified: 21 Oct 2024 14:36 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/60551