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Partnership, reciprocity and team design


  • De Marco, Giuseppe
  • Immordino, Giovanni


This paper studies the effect of intention-based reciprocity preferences on the free-riding problem arising in partnerships. Our results suggest a tendency of efficient partnerships to consist of members whose sensitivity to reciprocity is – individually or jointly – sufficiently high. Sufficient conditions for the implementation of the efficient strategy profile require a reciprocity-based sharing rule so that each partner gets a fraction of the output, which is a percentage of his own sensitivity to reciprocity with respect to the overall sensitivity in the team. Finally, we introduce the concept of psychological strong Nash equilibrium and show that it allows for the unique and collusion-proof implementation of the efficient strategy profile.

Suggested Citation

  • De Marco, Giuseppe & Immordino, Giovanni, 2013. "Partnership, reciprocity and team design," Research in Economics, Elsevier, vol. 67(1), pages 39-58.
  • Handle: RePEc:eee:reecon:v:67:y:2013:i:1:p:39-58 DOI: 10.1016/j.rie.2012.11.001

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    References listed on IDEAS

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    Cited by:

    1. Bierbrauer, Felix & Netzer, Nick, 2016. "Mechanism design and intentions," Journal of Economic Theory, Elsevier, vol. 163(C), pages 557-603.
    2. De Marco Giuseppe & Immordino Giovanni, 2014. "Reciprocity in the Principal–Multiple Agent Model," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 1-38, January.
    3. Bassi, Matteo & Pagnozzi, Marco & Piccolo, Salvatore, 2014. "Optimal contracting with altruism and reciprocity," Research in Economics, Elsevier, vol. 68(1), pages 27-38.

    More about this item


    Reciprocity; Partnership; Psychological games;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts


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