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Reciprocity and Emotions when Reciprocators know each other

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Author Info
Ernesto Reuben () (Faculty of Economics and Econometrics, Universiteit van Amsterdam)
Frans van Winden () (Faculty of Economics and Econometrics, Universiteit van Amsterdam)

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Abstract

This is an experimental study of a three-player power-to-take game where a take authority is matched with two responders. The game consists of two stages. In the first stage, the take authority decides how much of the endowment of each responder that is left after the second stage will be transferred to the take authority (the so-called take rate). In the second stage, each responder can react by destroying any part of his or her own endowment. Two treatments are considered: one in which all players are ‘strangers’ to each other (random matching), and one in which the responders know each other from outside the lab and are more or less close ‘friends’ (whereas the take-authority is again randomly selected). We focus on how the intensity of ties between responders impacts the decisions, beliefs, and emotions of both the responders and the take-authority. Some of our findings are: (1) although take rates are about the same, friends destroy more than strange! rs when faced with high take rates; (2) coordination on the same destruction level is stronger among friends; (3) the high level of coordination among friends can be explained by their emotional reaction towards one another; (4) the difference between the actual and expected take rate is a much better predictor of experienced emotions and destruction than the difference between the actual and (what is considered as) the fair take rate.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 04-098/1.

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Date of creation: 03 Sep 2004
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Handle: RePEc:dgr:uvatin:20040098

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Related research
Keywords: Reciprocity social ties power-to-take emotions 3-person ultimatum game friends appropiation

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Find related papers by JEL classification:
D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
Z13 - Other Special Topics - - Cultural Economics - - - Social Norms and Social Capital; Social Networks Economic Anthropology

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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. Astrid Hopfensitz & Ernesto Reuben, 2005. "The Importance of Emotions for the Effectiveness of Social Punishment," Tinbergen Institute Discussion Papers 05-075/1, Tinbergen Institute, revised 28 Mar 2006. [Downloadable!]
    Other versions:
  2. Ernesto Reuben & Frans van Winden, 2005. "Negative Reciprocity and the Interaction of Emotions and Fairness Norms," Tinbergen Institute Discussion Papers 05-014/1, Tinbergen Institute. [Downloadable!]
    Other versions:
  3. Pablo Brañas-Garza & Ramón Cobo-Reyes & Natalia Jiménez & Giovanni Ponti, 2005. "An experimental device to elicit social networks," ThE Papers 05/19, Department of Economic Theory and Economic History of the University of Granada.. [Downloadable!]
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