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Implications of trust, fear, and reciprocity for modeling economic behavior

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  • James Cox

    ()

  • Klarita Sadiraj

    ()

  • Vjollca Sadiraj

    ()

Abstract

This paper reports three experiments with triadic or dyadic designs. The experiments include the moonlighting game in which first-mover actions can elicit positively or negatively reciprocal reactions from second movers. First movers can be motivated by trust in positive reciprocity or fear of negative reciprocity, in addition to unconditional other-regarding preferences. Second movers can be motivated by unconditional other-regarding preferences as well as positive or negative reciprocity. The experimental designs include control treatments that discriminate among actions with alternative motivations. Data from our three experiments and a fourth one are used to explore methodological questions, including the effects on behavioral hypothesis tests of within-subjects vs. across-subjects designs, single-blind vs. double-blind payoffs, random vs. dictator first-mover control treatments, and strategy responses vs. sequential play. Copyright Economic Science Association 2008

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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 11 (2008)
Issue (Month): 1 (March)
Pages: 1-24

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Handle: RePEc:kap:expeco:v:11:y:2008:i:1:p:1-24

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Web page: http://www.springerlink.com/link.asp?id=102888

Related research

Keywords: Experiments; Theory; Parsimony; Trust; Fear; Reciprocity; Methodology;

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References

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  1. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
  2. McCabe, Kevin A. & Rigdon, Mary L. & Smith, Vernon L., 2003. "Positive reciprocity and intentions in trust games," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 267-275, October.
  3. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
  4. Margin Dufwenberg & Georg Kirchsteiger, 2001. "A Theory of Sequential Reciprocity," Levine's Working Paper Archive 563824000000000090, David K. Levine.
  5. Bolton, G.E. & Brandts, J. & Ockenfels, A., 1997. "Measuring Motivations for the Reciprocal Responses Observed in a Simple Dilemma Game," UFAE and IAE Working Papers 400.97, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  6. Guttman, Joel M., 2000. "On the evolutionary stability of preferences for reciprocity," European Journal of Political Economy, Elsevier, vol. 16(1), pages 31-50, March.
  7. James C. Cox & Cary A. Deck, 2005. "On the Nature of Reciprocal Motives," Economic Inquiry, Western Economic Association International, vol. 43(3), pages 623-635, July.
  8. Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
  9. James C. Cox & Cary A. Deck, 2006. "When Are Women More Generous than Men?," Economic Inquiry, Western Economic Association International, vol. 44(4), pages 587-598, October.
  10. Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
  11. Charness, Gary B, 2004. "Attribution And Reciprocity In An Experimental Labor Market," University of California at Santa Barbara, Economics Working Paper Series qt8rp6b18c, Department of Economics, UC Santa Barbara.
  12. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
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Citations

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Cited by:
  1. James C. Cox, 2007. "Trust and Reciprocity: Implications of Game Triads and Social Contexts," Experimental Economics Center Working Paper Series 2007-08, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University, revised May 2008.
  2. Maroš Servátka, 2007. "Does Generosity Generate Generosity? An Experimental Study of Reputation Effects in a Dictator Game," Working Papers in Economics 07/03, University of Canterbury, Department of Economics and Finance.
  3. Klaus Abbink & Lars Moller & Sarah O’Hara, 2010. "Sources of Mistrust: An Experimental Case Study of a Central Asian Water Conflict," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(2), pages 283-318, February.
  4. Cox, J. & Friedman, D. & Gjerstad, S., 2006. "A Trackable Model of Reciprocity and Fairness," Purdue University Economics Working Papers 1181, Purdue University, Department of Economics.
  5. Hodaka Morita & Maroš Servátka, 2012. "Group Identity and Relation-Specific Investment: An Experimental Investigation," Working Papers in Economics 12/16, University of Canterbury, Department of Economics and Finance.
  6. Charness, Gary & Kuhn, Peter J., 2010. "Lab Labor: What Can Labor Economists Learn from the Lab?," IZA Discussion Papers 4941, Institute for the Study of Labor (IZA).

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