A model of hysteresis arising from social interaction within a firm

8th Workshop on Multi-Rate Processes and Hysteresis;HSFS Workshop (Hysteresis and Slow-Fast Systems)

Rios, Luis A.^1 ; Rachinskii, Dmitrii^2 ; Cross, Rod^3

Wharton School of Business, University of Pennsylvania, United States^1

Department of Mathematical Sciences, University of Texas, Dallas, United States^2

Department of Economics (Emeritus), University of Strathclyde, United Kingdom^3

关键词: Social interactions;   

Others  :  https://iopscience.iop.org/article/10.1088/1742-6596/811/1/012011/pdf
DOI  :  10.1088/1742-6596/811/1/012011

来源: IOP

【 摘 要 】

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.