Social interaction in the workplace: Several extensions to a co-worker altruism model

In this thesis I look at the effect of changing some of the assumptions in a principal agent model on social interaction in the workplace. Workers can engage in productive and socialization activities and develop feelings of altruism towards each other after socializing. I study how changing certain assumptions affects the effort and attention choices of the agents and how this affects the employer. The extensions I look at include the effect of interdependencies between cost of effort and attention and different preferences of the workers with respect to socialization.