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Social Distance and Reciprocity: The Internet vs. the Laboratory

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Author Info
Gary Charness (University of California, Santa Barbara)
Ernan haruvy (School of Management, University of Texas at Dallas)
Doron Sonsino (Industrial Engineering and Management Technion, Haifa)

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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 elicits individual 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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Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number wp10-01.

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Date of creation: 13 Sep 2001
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Handle: RePEc:cdl:ucsbec:wp10-01

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

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.:

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  2. Hoffman, Elizabeth & McCabe, Kevin A & Smith, Vernon L, 1998. "Behavioral Foundations of Reciprocity: Experimental Economics and Evolutionary Psychology," Economic Inquiry, Oxford University Press, vol. 36(3), pages 335-52, July.
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  11. Lamoreaux, Naomi R., 1986. "Banks, Kinship, and Economic Development: The New England Case," The Journal of Economic History, Cambridge University Press, vol. 46(03), pages 647-667, September. [Downloadable!]
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  17. Michael Smith & Erik Brynjolfsson, 1999. "Frictionless Commerce? A Comparison of Internet and Conventional Retailers," Computing in Economics and Finance 1999 1022, Society for Computational Economics.
  18. Rosemarie Nagel & Antoni Bosch-Domènech & Albert Satorra & José García Montalvo, 1999. "One, Two, (Three), Infinity: Newspaper and Lab Beauty-Contest Experiments," Economics Working Papers 438, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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  19. Dufwenberg, M. & Kirchsteiger, G., 1998. "A theory of sequential reciprocity," Discussion Paper 37, Tilburg University, Center for Economic Research. [Downloadable!]
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  20. Corfman, Kim P & Lehmann, Donald R, 1993. " The Importance of Others' Welfare in Evaluating Bargaining Outcomes," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 20(1), pages 124-37, June.
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Cited by:
(explanations, 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. Mathias Drehmann & Jörg Oechssler & Andreas Roider, 2004. "Herding and Contrarian Behavior in Financial Markets - An Internet Experiment," Discussion Papers 7, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich. [Downloadable!]
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  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. [Downloadable!]
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