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Social Distance and Reciprocity: The Internet vs. the Laboratory

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Author Info

  • Charness, Gary
  • haruvy, Ernan
  • Sonsino, Doron

Abstract

We explore the effects of social distance on reciprocal behavior in an experiment conducted over the Internet on three continents and in classroom laboratory sessions conducted in Israel and Spain. Our design elicitsindividual behavior profiles over a range of contingencies, enabling us to identify heterogeneity among our participants. We find that many people show regard for others, even with the apparent social distance inherent with Internet interaction. Even in a virtual experiment, about 28% of the population demonstrate what appears to be positive reciprocity. The classroom laboratory sessions minimize (anonymous) social distance. While the rate of positive reciprocity is higher (43%) with less social distance, the patterns in behavior are surprisingly similar across treatments. To the extent that reciprocity could be a feature of virtual international business, perhaps cooperative behavior is sustainable.

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Bibliographic Info

Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt3dt073wb.

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Date of creation: 13 Sep 2001
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Handle: RePEc:cdl:ucsbec:qt3dt073wb

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Related research

Keywords: Internet Experiments; Lost-wallet Game; Reciprocity; Social Distance;

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References

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  1. Ernst Fehr & Simon Gaechter, . "Fairness and Retaliation: The Economics of Reciprocitys," IEW - Working Papers 040, Institute for Empirical Research in Economics - University of Zurich.
  2. Hoffman, Elizabeth & McCabe, Kevin A & Smith, Vernon L, 1998. "Behavioral Foundations of Reciprocity: Experimental Economics and Evolutionary Psychology," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 335-52, July.
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Cited by:
  1. Mathias Drehmann & Jörg Oechssler, 2004. "Herding and Contrarian Behavior in Financial Markets - An Internet Experiment," Econometric Society 2004 North American Winter Meetings 55, Econometric Society.
  2. Mathias Drehmann & Jörg Oechssler & Andreas Roider, 2004. "Herding with and without Payoff Externalities - An Internet Experiment," Bonn Econ Discussion Papers bgse15_2004, University of Bonn, Germany.

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