Reciprocity in the Principal Multiple Agent Model
AbstractThis paper studies how incentives are affected by intention-based reciprocity preferences when the principal hires many agents. Our results describe the agents' psychological attitudes required to sustain a given strategy profile. We also show that hiring reciprocal agents to implement a first or a second-best contract will always benefit the principal if the strategy profile is symmetric. When instead the profile (first or second-best) is asymmetric the principal's best interest might be better served by self-interested agents. We conclude the paper by clarifying when symmetric profiles are most likely to arise.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 314.
Date of creation: 10 May 2012
Date of revision:
reciprocity; many agents; psychological games;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-22 (All new papers)
- NEP-CBE-2012-05-22 (Cognitive & Behavioural Economics)
- NEP-CTA-2012-05-22 (Contract Theory & Applications)
- NEP-EVO-2012-05-22 (Evolutionary Economics)
- NEP-GTH-2012-05-22 (Game Theory)
- NEP-HRM-2012-05-22 (Human Capital & Human Resource Management)
- NEP-MIC-2012-05-22 (Microeconomics)
- NEP-SOC-2012-05-22 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charness, Gary & Rabin, Matthew, 2001.
"Understanding Social Preferences with Simple Tests,"
Department of Economics, Working Paper Series
qt4qz9k8vg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences With Simple Tests," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 817-869, August.
- 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.
- Gary Charness & Matthew Rabin, 2003. "Understanding Social Preferences with Simple Tests," General Economics and Teaching 0303002, EconWPA.
- Charness, Gary & Rabin, Matthew, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt3d04q5sm, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Pedro Rey-Biel, 2008.
"Inequity Aversion and Team Incentives,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 110(2), pages 297-320, 06.
- Pedro Rey Biel, 2004. "Inequity aversion and team incentives," Microeconomics 0407009, EconWPA.
- Pedro Rey-Biel, 2007. "Inequity Version and Team Incentives," UFAE and IAE Working Papers 677.07, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Pedro Rey-Biel, 2007. "Inequity Aversion and Team Incentives," Working Papers 319, Barcelona Graduate School of Economics.
- Florian Englmaier & Stephen G. Leider, 2008.
"Contractual and Organizational Structurewith Reciprocal Agents,"
CESifo Working Paper Series
2415, CESifo Group Munich.
- Florian Englmaier & Stephen Leider, 2012. "Contractual and Organizational Structure with Reciprocal Agents," American Economic Journal: Microeconomics, American Economic Association, vol. 4(2), pages 146-83, May.
- Giuseppe De Marco & Giovanni Immordino, 2010.
"Partnership, Reciprocity and Team Design,"
CSEF Working Papers
257, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 24 Mar 2011.
- Nick Netzer & Armin Schmutzler, 2009.
"Rotten Kids With Bad Intentions,"
0919, University of Zurich, Socioeconomic Institute, revised Nov 2011.
- Dominique Demougin & Claude Fluet, 2003.
"Group vs. Individual Performance Pay When Workers Are Envious,"
CIRANO Working Papers
- Dominique Demougin & Claude Fluet, 2003. "Group vs. Individual Performance Pay When Workers Are Envious," Cahiers de recherche 0318, CIRPEE.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lia Ambrosio).
If references are entirely missing, you can add them using this form.