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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. 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.
  2. Dufwenberg, M. & Kirchsteiger, G., 1998. "A Theory of Sequential Reciprocity," Discussion Paper 1998-37, Tilburg University, Center for Economic Research.
  3. Brandts, Jordi & Sola, Carles, 2001. "Reference Points and Negative Reciprocity in Simple Sequential Games," Games and Economic Behavior, Elsevier, vol. 36(2), pages 138-157, August.
  4. Armin Falk & Urs Fischbacher, 2001. "A Theory of Reciprocity," CESifo Working Paper Series 457, CESifo Group Munich.
  5. 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.
  6. M. Rabin, 2001. "Incorporating Fairness into Game Theory and Economics," Levine's Working Paper Archive 511, David K. Levine.
  7. Catherine C. Eckel & Philip J. Grossman, 2008. "Sex and Risk: Experimental Evidence," Development Research Unit Working Paper Series archive-09, Monash University, Department of Economics.
  8. 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.
  9. Gary E. Bolton & Axel Ockenfels, 2002. "A stress test of fairness measures in models of social utility," Papers on Strategic Interaction 2002-29, Max Planck Institute of Economics, Strategic Interaction Group.
  10. Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2001. "On the Nature of Fair Behaviour," CEPR Discussion Papers 2984, C.E.P.R. Discussion Papers.
  11. Matthias Sutter, 2007. "Outcomes versus intentions. on the nature of fair behavior and its development with age," Artefactual Field Experiments 00109, The Field Experiments Website.
  12. Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
  13. David K Levine, 1997. "Modeling Altruism and Spitefulness in Experiments," Levine's Working Paper Archive 2047, David K. Levine.
  14. Zephyr, 2010. "The city," City, Taylor & Francis Journals, vol. 14(1-2), pages 154-155, February.
  15. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, 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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