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On the costs of kindness: An experimental investigation of guilty minds and negative reciprocity

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  • Schubert, Manuel
  • Graf Lambsdorff, Johann

Abstract

Psychology has inspired economics to recognize intentions in addition to outcomes as being relevant for utility and behavior. Reciprocal behavior, in particular, has been related to the kindness of chosen actions and how kindness can be derived from the benefits obtained in unchosen alternatives. This study shows that a richer understanding of kindness is required. We carry out ultimatum games with a reduced space of strategies and observe that subjects refrain from negative reciprocity (rejecting proposals) if an unchosen alternative was costly to the proposer. Second, we find proposers to anticipate this behavior. Not only the benefits are relevant for assessments of kindness, the costs of kindness matter as well. --

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Bibliographic Info

Paper provided by University of Passau, Faculty of Business and Economics in its series Passauer Diskussionspapiere, Volkswirtschaftliche Reihe with number V-64-12.

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Date of creation: 2012
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Handle: RePEc:zbw:upadvr:v6412

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Keywords: intentions; reciprocity; fairness;

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  1. Dufwenberg, M. & Kirchsteiger, G., 1998. "A Theory of Sequential Reciprocity," Discussion Paper 1998-37, Tilburg University, Center for Economic Research.
  2. Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers 1812, C.E.P.R. Discussion Papers.
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  8. Catherine C. Eckel & Philip J. Grossman, 2008. "Sex and Risk: Experimental Evidence," Monash Economics Working Papers archive-09, Monash University, Department of Economics.
  9. Brandts, J. & Sola, C., 1998. "Reference Points and Negative Reciprocity in Simple Sequential Games," UFAE and IAE Working Papers 425.98, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  10. Zephyr, 2010. "The city," City, Taylor & Francis Journals, vol. 14(1-2), pages 154-155, February.
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  12. Cox, James C. & Friedman, Daniel & Gjerstad, Steven, 2007. "A tractable model of reciprocity and fairness," Games and Economic Behavior, Elsevier, vol. 59(1), pages 17-45, April.
  13. Schubert, Manuel, 2012. "Deeds rather than omissions: How intended consequences provoke negative reciprocity," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-65-12, University of Passau, Faculty of Business and Economics.
  14. Lambsdorff, Johann Graf & Frank, Björn, 2011. "Corrupt reciprocity - Experimental evidence on a men's game," International Review of Law and Economics, Elsevier, vol. 31(2), pages 116-125, June.
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Cited by:
  1. Schubert, Manuel, 2012. "Deeds rather than omissions: How intended consequences provoke negative reciprocity," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-65-12, University of Passau, Faculty of Business and Economics.

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