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Attribution and Reciprocity in an Experimental Labor Market

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Author Info
Gary Charness (University of California, Santa Barbara)

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Abstract

The gift-exchange game has established that, in the laboratory, higher wages offered by an employer lead to considerably more costly effort provision. However, it is unclear whether this behavior reflects reciprocity or other forms of social preferences. This article tests whether attribution of volition in choosing a wage has a significant effect on subsequent costly effort provision. Treatments varied whether wages were chosen by the employer or by an external process. We see that both distributional concerns and reciprocity play a major role. The data are examined in the light of recent utility models.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 22 (2004)
Issue (Month): 3 (July)
Pages: 665-688
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Handle: RePEc:ucp:jlabec:v:22:y:2004:i:3:p:665-688

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References listed on IDEAS
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. Brandts, Jordi & Sola, Carles, 2001. "Reference Points and Negative Reciprocity in Simple Sequential Games," Games and Economic Behavior, Elsevier, vol. 36(2), pages 138-157, August. [Downloadable!] (restricted)
  2. Blount, Sally, 1995. "When Social Outcomes Aren't Fair: The Effect of Causal Attributions on Preferences," Organizational Behavior and Human Decision Processes, Elsevier, vol. 63(2), pages 131-144, August. [Downloadable!] (restricted)
  3. Gary Bolton & Jordi Brandts & Axel Ockenfels, 1998. "Measuring Motivations for the Reciprocal Responses Observed in a Simple Dilemma Game," Experimental Economics, Springer, vol. 1(3), pages 207-219, December. [Downloadable!] (restricted)
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  4. 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)
  5. Ham, John C. & Kagel, John H. & Lehrer, Steven F., 2005. "Randomization, endogeneity and laboratory experiments: the role of cash balances in private value auctions," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 175-205. [Downloadable!] (restricted)
  6. Offerman, Theo, 2002. "Hurting hurts more than helping helps," European Economic Review, Elsevier, vol. 46(8), pages 1423-1437, September. [Downloadable!] (restricted)
  7. Bolton, Gary E, 1991. "A Comparative Model of Bargaining: Theory and Evidence," American Economic Review, American Economic Association, vol. 81(5), pages 1096-136, December. [Downloadable!] (restricted)
  8. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1986. "Fairness and the Assumptions of Economics," Journal of Business, University of Chicago Press, vol. 59(4), pages S285-300, October. [Downloadable!] (restricted)
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