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Transfers and reciprocity in overlapping generations experiments

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Author Info
Heijden, E. van der
Nelissen, J.
Potters, J.
Verbon, H. (Tilburg University, Center for Economic Research)

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Abstract

We experimentally investigate the development of voluntary transfers in an overlapping generations environment. By varying the information conditions of the game, we study whether the development of transfers is related to the possibility of future generations to monitor and reciprocate transfers of past generations. The results display a fairly high level of voluntary transfers across generations, even when players are experienced. Furthermore, the level of transfers does not seem to depend much on the possibility of monitoring. Weak signs of cross-generational reciprocity are observed. Apparently, the public-good features of the experiment dominate the possibilities for intertemporal rewarding and punishing

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 110.

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Date of creation: 1995
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Handle: RePEc:dgr:kubcen:1995110

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Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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  1. Guth, Werner & Tietz, Reinhard, 1990. "Ultimatum bargaining behavior : A survey and comparison of experimental results," Journal of Economic Psychology, Elsevier, vol. 11(3), pages 417-449, September. [Downloadable!] (restricted)
  2. Camerer, Colin & Weigelt, Keith, 1988. "Experimental Tests of a Sequential Equilibrium Reputation Model," Econometrica, Econometric Society, vol. 56(1), pages 1-36, January. [Downloadable!] (restricted)
  3. John O. Ledyard, 1994. "Public Goods: A Survey of Experimental Research," Public Economics 9405003, EconWPA, revised 22 May 1994. [Downloadable!]
  4. Ramon Marimon & Shyam Sunder, 1993. "Indeterminacy of Equilibria in a Hyperinflationary World: Experimental Evidence," Economics Working Papers 25, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  5. Lim, Suk S & Prescott, Edward C & Sunder, Shyam, 1994. "Stationary Solution to the Overlapping Generations Model of Fiat Money: Experimental Evidence," Empirical Economics, Springer, vol. 19(2), pages 255-77.
  6. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May. [Downloadable!] (restricted)
  7. Van Dalen, H.P. & Van Praag, B.M.S., 1992. "Public Pensions, Market Power and Intergenerational Confidence," Papers 9267-a, Erasmus University of Rotterdam - Econometric Institute.
  8. Veall, Michael R., 1986. "Public pensions as optimal social contracts," Journal of Public Economics, Elsevier, vol. 31(2), pages 237-251, November. [Downloadable!] (restricted)
  9. Verbon, Harrie A A, 1986. "Altruism, Political Power and Public Pensions," Kyklos, Blackwell Publishing, vol. 39(3), pages 343-58.
  10. Heijden, E.C.M. van der & Nelissen, J.H.M. & Verbon, H.A.A., 1995. "Altruism and Fairness in a Public Pension System," Discussion Paper 37, Tilburg University, Center for Economic Research. [Downloadable!]
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  11. Cadsby, Charles Bram & Frank, Murray, 1991. "Experimental Tests of Ricardian Equivalence," Economic Inquiry, Oxford University Press, vol. 29(4), pages 645-64, October.
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  12. Ernst FEHR & Georg KIRCHSTEIGER & Arno RIEDL, 1993. "Gift Exchange and Ultimatum in Experimental Markets," Vienna Economics Papers vie9301, University of Vienna, Department of Economics.
  13. Kotlikoff, Laurence J & Persson, Torsten & Svensson, Lars E O, 1988. "Social Contracts as Assets: A Possible Solution to the Time-Consistency Problem," American Economic Review, American Economic Association, vol. 78(4), pages 662-77, September. [Downloadable!] (restricted)
  14. 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)
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