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Families, Markets and Self-Enforcing Reciprocity Norms

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  • Joel M. Guttman

Abstract

This paper studies the evolution of self-enforcing reciprocity norms in a developing economy with weak property rights. In the model, children are viewed as investments in old-age support. In order to increase support in their old age, parents attempt to instill preferences for reciprocity in their children. These educational investments create a nucleus of "reciprocators", inducing the remaining opportunistic types to mimic the reciprocators' behavior, in order to find partners in their market transactions.

Suggested Citation

  • Joel M. Guttman, 2001. "Families, Markets and Self-Enforcing Reciprocity Norms," Annals of Economics and Statistics, GENES, issue 63-64, pages 89-110.
    • Handle: RePEc:adr:anecst:y:2001:i:63-64:p:89-110
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    File URL: http://www.jstor.org/stable/20076297
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    Cited by:

    1. Joel M. Guttman, 2010. "Urbanization, Old-Age Security, Saving and Fertility in Developing Economies," NFI Working Papers 2010-WP-07, Indiana State University, Scott College of Business, Networks Financial Institute.
    2. Joel M. Guttman, 2008. "The Subsistence Constraint and Endogenous Risk Aversion," NFI Working Papers 2008-WP-01, Indiana State University, Scott College of Business, Networks Financial Institute.
    3. Mengel, Friederike, 2008. "Matching structure and the cultural transmission of social norms," Journal of Economic Behavior & Organization, Elsevier, vol. 67(3-4), pages 608-623, September.
    4. Guttman, Joel M. & Goette, Lorenz, 2015. "Reputation, volunteering, and trust: Minimizing reliance on taste-based explanations," European Journal of Political Economy, Elsevier, vol. 40(PB), pages 375-386.
    5. Alberto Bisin & Giorgio Topa & Thierry Verdier, 2004. "Cooperation as a Transmitted Cultural Trait," Rationality and Society, , vol. 16(4), pages 477-507, November.

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