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Immaterial and Monetary Gifts in Economic Transactions - Evidence from the Field

Author

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  • Michael Kirchler

    (Department of Banking and Finance, University of Innsbruck
    Department of Economics, University of Gothenburg)

  • Stefan Palan

    (Department of Banking and Finance, University of Graz
    Department of Banking and Finance, University of Innsbruck)

Abstract

Reciprocation of monetary gifts is well-understood in economics. In contrast, there is little research on reciprocal behavior following immaterial gifts like compliments. We close this gap and investigate how employees reciprocate after receiving immaterial and material gifts. We purchase (1) ice cream from fast food restaurants, and (2) durum doner, a common lunch snack, from independent vendors. Prior to the food's preparation, we either compliment or tip the salesperson. Salespersons reciprocate compliments with higher product weight than in a control treatment. This reciprocal behavior grows over repeated transactions. Tips have a stronger level effect which marginally decreases over time.

Suggested Citation

  • Michael Kirchler & Stefan Palan, 2016. "Immaterial and Monetary Gifts in Economic Transactions - Evidence from the Field," Working Paper Series, Social and Economic Sciences 2016-01, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    • Handle: RePEc:grz:wpsses:2016-01
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    References listed on IDEAS

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    2. Michael Kirchler & Stefan Palan, 2018. "Immaterial and monetary gifts in economic transactions: evidence from the field," Experimental Economics, Springer;Economic Science Association, vol. 21(1), pages 205-230, March.
    3. Kandul, Serhiy & Lanz, Bruno & Reins, Evert, 2023. "Reciprocity and gift exchange in markets for credence goods," Games and Economic Behavior, Elsevier, vol. 141(C), pages 52-69.
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    6. Blacklow, Paul & Corman, Amy Beth & Sibly, Hugh, 2021. "The Demand and Supply of Esteem: An experimental analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    7. Blacklow, Paul & Sibly, Hugh & Corman, Amy Beth, 2021. "Do we prefer praise from acquaintances or strangers? An experiment on esteem seeking in one-shot versus repeated interactions," Working Papers 2021-08, University of Tasmania, Tasmanian School of Business and Economics.
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    10. Hornuf, Lars & Jeworrek, Sabrina, 2018. "Crowdsourced innovation: How community managers affect crowd activities," IWH Discussion Papers 13/2018, Halle Institute for Economic Research (IWH).

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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