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Negative Reciprocity and the Interaction of Emotions and Fairness Norms

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  • Ernesto Reuben

    ()
    (Faculty of Economics and Econometrics, Universiteit van Amsterdam)

  • Frans van Winden

    ()
    (Faculty of Economics and Econometrics, Universiteit van Amsterdam)

Abstract

This experimental study investigates how behavior changes after punishment for an unkind action. It also studies how fairness perceptions affect the reaction to punishment and whether this effect is consistent across repeated play and role experiences. A repeated version of the power-to-take game is used. In this game, the proposer can make a claim on the resources of a responder. Then, the responder can destroy any part of her own resources. The focus is on how proposers adjust their behavior depending on their fairness perceptions, their experienced emotions, and their interaction with responders. We find that fairness plays an important role in the behavior of proposers. Specifically, deviations from a perceived fairness norm trigger feelings of shame and guilt, which induce proposers to lower their claims. However, we also find that the perceived fairness norm varies considerably between individuals. Therefore, it is not the case that proposers who co! nsidered they were acting fairly were particularly nice to responders. Our results also show that the different types of individuals predicted by models of social preferences, can be traced among the subjects that played the same role in both periods, but fail to describe the behavior of subjects who switched from one role to the other.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 05-014/1.

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Date of creation: 31 Jan 2005
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Handle: RePEc:dgr:uvatin:20050014

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Web page: http://www.tinbergen.nl

Related research

Keywords: negative reciprocity; emotions; fairness; shame; experiment; proposer; punishment;

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References

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  1. Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers, University of California at Berkeley 92-199, University of California at Berkeley.
  2. Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1812, C.E.P.R. Discussion Papers.
  3. Noussair, C.N. & Masclet, D. & Tucker, S. & Villeval, M..C, 2003. "Monetary and non-monetary punishment in the voluntary contributions mechanism," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377951, Tilburg University.
  4. Bosman, Ronald & Sutter, Matthias & van Winden, Frans, 2005. "The impact of real effort and emotions in the power-to-take game," Journal of Economic Psychology, Elsevier, Elsevier, vol. 26(3), pages 407-429, June.
  5. David K Levine, 1997. "Modeling Altruism and Spitefulness in Experiments," Levine's Working Paper Archive 2047, David K. Levine.
  6. Shyam Sunder & Haijin Lin, 2003. "Using Experimental Data to Model Bargaining Behavior in Ultimatum Games," Yale School of Management Working Papers, Yale School of Management ysm330, Yale School of Management.
  7. Giorgio Coricelli, 2002. "Sequence Matters: an Experimental Study of the Effects of Experiencing Positive and Negative Reciprocity," Department of Economics University of Siena, Department of Economics, University of Siena 369, Department of Economics, University of Siena.
  8. Alvin E. Roth & V. Prasnikar & M. Okuno-Fujiwara & S. Zamir, 1998. "Bargaining and market behavior in Jerusalem, Liubljana, Pittsburgh and Tokyo: an experimental study," Levine's Working Paper Archive 344, David K. Levine.
  9. Charness, Gary B & Rabin, Matthew, 2001. "Understanding Social Preferences With Simple Tests," University of California at Santa Barbara, Economics Working Paper Series qt0dc3k4m5, Department of Economics, UC Santa Barbara.
  10. Ernst Fehr & Simon Gaechter, 1999. "Cooperation and Punishment in Public Goods Experiments," CESifo Working Paper Series 183, CESifo Group Munich.
  11. Falk, Armin & Fischbacher, Urs, 2001. "A Theory of Reciprocity," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3014, C.E.P.R. Discussion Papers.
  12. Straub, Paul G. & Murnighan, J. Keith, 1995. "An experimental investigation of ultimatum games: information, fairness, expectations, and lowest acceptable offers," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 27(3), pages 345-364, August.
  13. Ernesto Reuben & Frans van Winden, 2006. "Reciprocity and Emotions when Reciprocators Know each other," CESifo Working Paper Series 1674, CESifo Group Munich.
  14. Gary E Bolton & Axel Ockenfels, 1997. "A Theory of Equity, Reciprocity, and Competition," Levine's Working Paper Archive 1889, David K. Levine.
  15. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, Elsevier, vol. 6(3), pages 347-369, May.
  16. Gershon Ben-Shakhar & Gary Bornstein & Astrid Hopfensitz & Frans van Winden, 2004. "Reciprocity and Emotions: Arousal, Self-Reports, and Expectations," Tinbergen Institute Discussion Papers, Tinbergen Institute 04-099/1, Tinbergen Institute.
  17. Pamela Schmitt, 2004. "On Perceptions of Fairness: The Role of Valuations, Outside Options, and Information in Ultimatum Bargaining Games," Experimental Economics, Springer, Springer, vol. 7(1), pages 49-73, February.
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  19. Georg Kirchsteiger, 1994. "The role of envy in ultimatum games," ULB Institutional Repository 2013/5925, ULB -- Universite Libre de Bruxelles.
  20. Rapoport, Amnon & Sundali, James A, 1996. "Ultimatums in Two-Person Bargaining with One-Sided Uncertainty: Offer Games," International Journal of Game Theory, Springer, Springer, vol. 25(4), pages 475-94.
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Citations

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Cited by:
  1. Michal Krawczyk, 2011. "A model of procedural and distributive fairness," Theory and Decision, Springer, Springer, vol. 70(1), pages 111-128, January.
  2. Jonathan Tan & Friedel Bolle, 2006. "On the Relative Strengths of Altruism and Fairness," Theory and Decision, Springer, Springer, vol. 60(1), pages 35-67, 02.
  3. Ernesto Reuben & Arno Riedl, 2009. "Public Goods Provision and Sanctioning in Privileged Groups," Journal of Conflict Resolution, Peace Science Society (International), Peace Science Society (International), vol. 53(1), pages 72-93, February.
  4. Werner Güth & Martin G. Kocher, 2013. "More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature," Jena Economic Research Papers, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics 2013-035, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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