Toward an understanding of the relative strengths of positive and negative reciprocity
AbstractA stylized fact is that agents respond more acutely to negative than positive stimuli. Such findings have generated insights on mechanism-design, have been featured prominently in policymaking, and more generally have led to discussions of whether preferences are defined over consumption levels or changes in consumption. This study reconsiders this stylized fact. In doing so, it provides insights into an important domain wherein positive stimuli induce a greater response than negative stimuli: a principal-agent game with reputational considerations and with the agent on the market's short end. This common setting represents an important feature of labor markets with involuntary unemployment.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16547.
Date of creation: Nov 2010
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Other versions of this item:
- Omar Al-Ubaydli & Uri Gneezy & Min Sok Lee & John A. List, 2010. "Towards an understanding of the relative strengths of positive and negative reciprocity," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 5(7), pages 524-539, December.
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
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