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Intrinsic and instrumental reciprocity: An experimental study

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  • Cabral, Luis
  • Ozbay, Erkut Y.
  • Schotter, Andrew

Abstract

In the context of an indefinitely repeated veto game, we devise an experiment to distinguish between alternative explanations of generous behavior (accepting negative payoffs): altruism, intrinsic backward-looking reciprocity, and instrumental forward-looking reciprocity. Our results are broadly consistent with the hypothesis that observed sacrifices are motivated by equilibrium selfish, forward-looking reciprocal behavior although we find a more subtle way in which past kindness affects behavior.

Suggested Citation

  • Cabral, Luis & Ozbay, Erkut Y. & Schotter, Andrew, 2014. "Intrinsic and instrumental reciprocity: An experimental study," Games and Economic Behavior, Elsevier, vol. 87(C), pages 100-121.
    • Handle: RePEc:eee:gamebe:v:87:y:2014:i:c:p:100-121
    DOI: 10.1016/j.geb.2014.05.001
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    More about this item

    Keywords

    Reciprocity; Indefinitely repeated games; Veto game;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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