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Positive and negative reciprocity in labor market

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  • Paulo Trigo Pereira
  • Nuno Silva
  • João Andrade e Silva

Abstract

This paper reports results of an experiment designed to analyze whether reciprocal behavior survives in a more hostile environment than usually considered in the literature. In fact, positive reciprocity survives in a treatment favoring selfish behavior, although there is a decrease in the deviations from the subgame perfect Nash equilibrium. Besides positive reciprocity there is negative reciprocity in this new treatment. Additionally, this paper highlights the influence of the experimental design, namely the importance of wage cut points, on subjects' behavior.

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File URL: http://pascal.iseg.utl.pt/~depeco/wp/wp032002.pdf
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Bibliographic Info

Paper provided by ISEG - School of Economics and Management, Department of Economics, University of Lisbon in its series Working Papers Department of Economics with number 2002/03.

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Date of creation: 2002
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Handle: RePEc:ise:isegwp:wp32002

Contact details of provider:
Postal: Department of Economics, ISEG - School of Economics and Management, University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL
Web page: https://aquila1.iseg.ulisboa.pt/aquila/departamentos/EC

Related research

Keywords: Reciprocity; Gift exchange games; Gift and offense exchange games; Incomplete contracts; Labor relations.;

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