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Intention-based reciprocity and the hidden costs of control

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  • von Siemens, Ferdinand A.
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    Abstract

    Empirical research suggests that – despite strengthening conventional incentives to put in effort – exerting control might reduce worker performance. The present paper shows that intention-based reciprocity can explain such hidden costs of control if individuals differ in their propensity for reciprocity and preferences are private information. Not being controlled might then be considered to be kind, because not everybody reciprocates not being controlled with high effort. This argument contrasts existing theoretical wisdom on the hidden costs of control that is almost exclusively based on signaling.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

    Volume (Year): 92 (2013)
    Issue (Month): C ()
    Pages: 55-65

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    Handle: RePEc:eee:jeborg:v:92:y:2013:i:c:p:55-65

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    Web page: http://www.elsevier.com/locate/jebo

    Related research

    Keywords: Intention-based reciprocity; Incomplete information; Hidden costs of control;

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    Cited by:
    1. Schnedler, Wendelin & Vanberg, Christoph, 2014. "Playing 'Hard to Get': An Economic Rationale for Crowding Out of Intrinsically Motivated Behavior," Working Papers 0559, University of Heidelberg, Department of Economics.
    2. Schnedler, Wendelin & Vanberg, Christoph, 2014. "Playing ‘hard to get’: An economic rationale for crowding out of intrinsically motivated behavior," European Economic Review, Elsevier, vol. 68(C), pages 106-115.

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