Permanent URL to this publication: http://dx.doi.org/10.5167/uzh-51932
Gächter, Simon; Falk, Armin (2002). Reputation and Reciprocity: Consequences for the Labour Relation. Working paper series / Institute for Empirical Research in Economics No. 19, University of Zurich.
"Recent evidence highlights the importance of social norms in many economic relations. However, many of these relationships are long-term and provide repeated game incentives for performance. We experimentally investigate interaction effects of reciprocity and repeated game incentives in two treatments (one-shot and repeated) of a gift-exchange game. In both treatments we observe reciprocity, which is strengthened in the repeated game. A detailed analysis shows that in the repeated game some subjects imitate reciprocity. Thus, reciprocity and repeated game incentives reinforce each other. Observed behaviour is robust against experience. We conclude that a long-term interaction is a “reciprocity-compatible” contract enforcement device."
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|Item Type:||Working Paper|
|Communities & Collections:||03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
|Dewey Decimal Classification:||330 Economics|
|Deposited On:||29 Nov 2011 21:26|
|Last Modified:||09 Jul 2012 05:01|
|Series Name:||Working paper series / Institute for Empirical Research in Economics|
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