Toward an understanding of the relative strengths of positive and negative reciprocity
A stylized fact is that agents respond more acutely to negative than positive stimuli. Such findings have generated insights on mechanism-design, have been featured prominently in policymaking, and more generally have led to discussions of whether preferences are defined over consumption levels or changes in consumption. This study reconsiders this stylized fact. In doing so, it provides insights into an important domain wherein positive stimuli induce a greater response than negative stimuli: a principal-agent game with reputational considerations and with the agent on the market's short end. This common setting represents an important feature of labor markets with involuntary unemployment.
|Date of creation:||Nov 2010|
|Date of revision:|
|Publication status:||published as Judgment and Decision Making, Vol. 5, No. 7, December 2010, pp. 524–539|
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- Houser, Daniel & Morton, Rebecca & Stratmann, Thomas, 2011.
"Turned on or turned out? Campaign advertising, information and voting,"
European Journal of Political Economy,
Elsevier, vol. 27(4), pages 708-727.
- Daniel Houser & Rebecca Morton & Thomas Stratmann, 2008. "Turned Off or Turned Out? Campaign Advertising,Information, and Voting," Working Papers 1005, George Mason University, Interdisciplinary Center for Economic Science, revised Jul 2008.
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