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Intention - Based economic theories of reciprocity

  • Darwin Cortes


In recent years, several experiments have shown individuals exhibit authentic reciprocal behaviour in anonymous one-shot interactions. As reciprocity has been shown to be relevant in several economic fields, there have also been several attempts to model reciprocal bahaviour. I review the intention-based models of reciprocity and present an example of teacher management in the public sector in which the government offers an incentive scheme to implement a program. The incentive scheme has a prisoner´s dilemma structure. In both simultaneous and sequential games, equilibrium results may differ from those predicted by standard theory.

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Volume (Year): (2002)
Issue (Month): (December)

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Handle: RePEc:col:000151:002905
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  1. Ernst Fehr & Simon Gaechter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," CESifo Working Paper Series 336, CESifo Group Munich.
  2. Geanakoplos, John & Pearce, David & Stacchetti, Ennio, 1989. "Psychological games and sequential rationality," Games and Economic Behavior, Elsevier, vol. 1(1), pages 60-79, March.
  3. David K Levine, 1997. "Modeling Altruism and Spitefulness in Experiments," Levine's Working Paper Archive 2047, David K. Levine.
  4. repec:tpr:qjecon:v:97:y:1982:i:4:p:543-69 is not listed on IDEAS
  5. repec:tpr:qjecon:v:111:y:1996:i:3:p:671-718 is not listed on IDEAS
  6. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
  7. Frey, Bruno S & Jegen, Reto, 2001. " Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
  8. Fehr, Ernst & Schmidt, Klaus M., 2001. "Theories of Fairness and Reciprocity," Discussion Papers in Economics 14, University of Munich, Department of Economics.
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