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Direct versus Indirect Reciprocity: An Experiment

Author

Listed:
  • Martin Dufenberg

    (Department of Stockholm, Stockholm University)

  • Uri Gneezy

    (Faculty of Industrial Engineering and Management, Technion)

  • Werner G³th

    (Department of Economics, Humboldt-University Berlin)

  • Eric Van Demme

    (Center for Economic Research, Tilburg University)

Abstract

In this paper we report experimental results that relate to the recprocity experiment of Berg, Dickhaut, and McCabe (1995). We consider direct reciprocity, which means to respond in kind to another person, and indirect reciprocity, understoode as rewarding someone else. Another variation conerns the information about the multiplier of donations where we compare the benchmark case with a commonly known multiplier to a condition where the multiplier is known with cerntainty only to donors. Questions which we try to answer are: Will indirect reciprocity induce higher or lower donations?, will donors with the high multiplier "hide behind the small one?", how do receivers respond to different situations?

Suggested Citation

  • Martin Dufenberg & Uri Gneezy & Werner G³th & Eric Van Demme, 2001. "Direct versus Indirect Reciprocity: An Experiment," Homo Oeconomicus, Institute of SocioEconomics, vol. 18, pages 19-30.
    • Handle: RePEc:hom:homoec:v:18:y:2001:p:19-30
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    Cited by:

    1. Rietz, Thomas A. & Sheremeta, Roman M. & Shields, Timothy W. & Smith, Vernon L., 2013. "Transparency, efficiency and the distribution of economic welfare in pass-through investment trust games," Journal of Economic Behavior & Organization, Elsevier, vol. 94(C), pages 257-267.
    2. Aurélie Bonein & Daniel Serra, 2006. "L'influence de la connaissance du genre du partenaire dans les relations de confiance et de réciprocité: une étude expérimentale," Working Papers 06-02, LAMETA, Universtiy of Montpellier, revised Jan 2006.
    3. Roman M. Sheremeta & Jingjing Zhang, 2014. "Three-Player Trust Game With Insider Communication," Economic Inquiry, Western Economic Association International, vol. 52(2), pages 576-591, April.
    4. David Hugh-Jones & Martin Alois Leroch, 2017. "Intergroup Revenge: A Laboratory Experiment," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 34(2), pages 117-135, November.
    5. Becchetti, Leonardo & Castriota, Stefano & Conzo, Pierluigi, 2017. "Disaster, Aid, and Preferences: The Long-run Impact of the Tsunami on Giving in Sri Lanka," World Development, Elsevier, vol. 94(C), pages 157-173.
    6. Cox, James C., 2004. "How to identify trust and reciprocity," Games and Economic Behavior, Elsevier, vol. 46(2), pages 260-281, February.
    7. Luini, Luigi & Nese, Annamaria & Sbriglia, Patrizia, 2014. "Social influence in trustors’ neighbourhoods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 53(C), pages 97-110.
    8. Werner Güth & Hartmut Kliemt & Stefan Napel, "undated". "Wie Du mir, so ich Dir! - Ökonomische Theorie und Experiment am Beispiel der Reziprozität," Papers on Strategic Interaction 2002-19, Max Planck Institute of Economics, Strategic Interaction Group.
    9. Ori Weisel & Ro'i Zultan, 2013. "Social motives in intergroup conflict," Jena Economics Research Papers 2013-033, Friedrich-Schiller-University Jena.
    10. Stanca, Luca, 2009. "Measuring indirect reciprocity: Whose back do we scratch?," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 190-202, April.
    11. Wayne E. Baker & Nathaniel Bulkley, 2014. "Paying It Forward vs. Rewarding Reputation: Mechanisms of Generalized Reciprocity," Organization Science, INFORMS, vol. 25(5), pages 1493-1510, October.
    12. Bonein, Aurélie & Serra, Daniel, 2007. "Another experimental look at reciprocal behavior: indirect reciprocity," MPRA Paper 3257, University Library of Munich, Germany, revised Mar 2007.
    13. David A. Steinberg & Yeling Tan, 2023. "Public responses to foreign protectionism: Evidence from the US-China trade war," The Review of International Organizations, Springer, vol. 18(1), pages 145-167, January.
    14. Wolf, Stephan & Dron, Cameron, 2020. "The effect of an experimental veil of ignorance on intergenerational resource sharing: empirical evidence from a sequential multi-person dictator game," Ecological Economics, Elsevier, vol. 175(C).
    15. Tobias Hahn & Noël Albert, 2017. "Strong Reciprocity in Consumer Boycotts," Journal of Business Ethics, Springer, vol. 145(3), pages 509-524, October.
    16. Bellemare, Charles & Kröger, Sabine & van Soest, Arthur, 2011. "Preferences, intentions, and expectation violations: A large-scale experiment with a representative subject pool," Journal of Economic Behavior & Organization, Elsevier, vol. 78(3), pages 349-365, May.
    17. Weisel, Ori & Zultan, Ro׳i, 2016. "Social motives in intergroup conflict: Group identity and perceived target of threat," European Economic Review, Elsevier, vol. 90(C), pages 122-133.
    18. Brian Duncan, 2009. "Secret Santa Reveals The Secret Side Of Giving," Economic Inquiry, Western Economic Association International, vol. 47(1), pages 165-181, January.
    19. Luca Stanca & Luigino Bruni & Marco Mantovani, 2011. "The effect of motivations on social indirect reciprocity: an experimental analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 18(17), pages 1709-1711.
    20. Luca Stanca, 2011. "Social science and neuroscience: how can they inform each other?," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(3), pages 243-256, September.
    21. Lilia Zhurakhovska, 2014. "Strategic Trustworthiness via Unstrategic Third-party Reward – An Experiment," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2014_06, Max Planck Institute for Behavioral Economics, revised Jan 2017.

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