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Simple and Complex Gift Exchange in the Laboratory

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Author Info
van der Heijden, Eline C M, et al

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Abstract

We examine an experimental gift exchange game in which the players can improve on the unique no-gifts equilibrium by two different types of gift exchange: simple and complex exchange, respectively. Complex exchange gives higher payoffs than simple exchange, but it requires not only mutual trust, like with simple exchange, but also a substantial degree of coordination. We examine whether players are able to conclude simple and complex exchanges and how this is affected by the move and matching structure of the game. We find that the so-called partners treatment is a precondition for the occurrence of complex exchange. Copyright 2001 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 39 (2001)
Issue (Month): 2 (April)
Pages: 280-97
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Handle: RePEc:oup:ecinqu:v:39:y:2001:i:2:p:280-97

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Fehr, Ernst & Kirchsteiger, George & Riedl, Arno, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 437-59, May. [Downloadable!] (restricted)
  2. Kranton, Rachel E, 1996. "Reciprocal Exchange: A Self-Sustaining System," American Economic Review, American Economic Association, vol. 86(4), pages 830-51, September. [Downloadable!] (restricted)
  3. Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-87, December. [Downloadable!] (restricted)
  4. Andreoni, James A & Miller, John H, 1993. "Rational Cooperation in the Finitely Repeated Prisoner's Dilemma: Experimental Evidence," Economic Journal, Royal Economic Society, vol. 103(418), pages 570-85, May. [Downloadable!] (restricted)
  5. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
  6. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July. [Downloadable!] (restricted)
  7. Guth, Werner, 1995. "An Evolutionary Approach to Explaining Cooperative Behavior by Reciprocal Incentives," International Journal of Game Theory, Springer, vol. 24(4), pages 323-44.
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  1. Jan Potters & Martin Sefton & Lise Vesterlund, 2007. "Leading-by-example and signaling in voluntary contribution games: an experimental study," Economic Theory, Springer, vol. 33(1), pages 169-182, October. [Downloadable!] (restricted)
  2. Eline C.M. van der Heijden & Jan H.M. Nelissen & Harrie A.A. Verbon, 2001. "Should the Same Side of the Market always move first in a Transaction? An Experimental Study," Tinbergen Institute Discussion Papers 01-089/3, Tinbergen Institute. [Downloadable!]
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  3. Johann Behrens & Hartmut Kliemt & M. Vittoria Levati & Werner Güth, 2006. "Games that Doctors Play Two-layered agency problems in a medical system," Discussion Papers on Strategic Interaction 2006-02, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  4. Potters, J. & Sefton, M. & Vesterlund, L., 2001. "Why announce leadership contributions? : An experimental study of the signaling and reciprocity hypotheses," Discussion Paper 100, Tilburg University, Center for Economic Research. [Downloadable!]
  5. Irlenbusch, Bernd & Sliwka, Dirk, 2003. "Career Concerns in a Simple Experimental Labour Market," IZA Discussion Papers 855, Institute for the Study of Labor (IZA). [Downloadable!]
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