We introduce the moonlighting game. Player A can take money from or pass money to player B, who can either return money or punish player A. One-shot experiments were performed on this game. Treatments were conducted with and without making non-binding agreements beforehand. The results refute the concept of rationality and support the impact of reciprocity and retribution, where retribution is more compelling than reciprocity. The equal division principle is the dominant fairness norm. Deviating norms are not a product of not knowing which norm to apply, but rather to avoid cognitive dissonance in advance.
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Paper provided by University of Bonn, Germany in its series Discussion Paper Serie B with number
415.
Length: pages Date of creation: Oct 1997 Date of revision: Handle: RePEc:bon:bonsfb:415
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Find related papers by JEL classification: C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
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