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Transparency and Reciprocal Behavior

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Author Info

  • Irlenbusch, Bernd

    ()
    (University of Cologne)

  • Sliwka, Dirk

    ()
    (University of Cologne)

Abstract

The impact of transparency on the extent of reciprocal behavior is investigated in a simple repeated gift exchange experiment, where principals set wages and agents respond by choosing effort levels. In addition to the efforts the principals’ payoffs are determined by a random component. It is shown that direct reciprocal behavior is much stronger in a more transparent situation where efforts are revealed to the principals. However, there is no significant impact of transparency on average effort as non-transparency leads to a stronger diversity in behavioral patterns such that at the same time the frequency of very low and very large effort levels increases.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 887.

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Length: 29 pages
Date of creation: Oct 2003
Date of revision:
Publication status: published in: Journal of Economic Behavior and Organization, 2005, 56 (3), 383-403
Handle: RePEc:iza:izadps:dp887

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Related research

Keywords: inequity aversion; gift exchange; reputation; reciprocity; transparency;

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References

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Citations

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Cited by:
  1. Marchegiani, Lucia & Reggiani, Tommaso & Rizzolli, Matteo, 2011. "How Unjust! An Experimental Investigation of Supervisors' Evaluation Errors and Agents' Incentives," IZA Discussion Papers 6254, Institute for the Study of Labor (IZA).
  2. Heike Hennig-Schmidt & Bettina Rockenbach & Abdolkarim Sadrieh, 2003. "Incomplete and Asymmetric Surplus Information in Labor Relations," Bonn Econ Discussion Papers bgse24_2003, University of Bonn, Germany.
  3. Florian Englmaier & Stephen G. Leider, 2010. "Gift Exchange in the Lab - It is not (only) how much you give ..," CESifo Working Paper Series 2944, CESifo Group Munich.

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