Not logged in.

Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title A Theory of Reciprocity
Organization Unit
Authors
  • Armin Falk
  • Urs Fischbacher
Language
  • English
Institution University of Zurich
Series Name Working paper series / Institute for Empirical Research in Economics
Number No. 6
ISSN 1424-0459
Date 2000
Abstract Text "This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by it’s consequences but also by the intention underlying this action. The theory explains the relevant stylized facts of a wide range of experimental games. Among them are the ultimatum game, the gift-exchange game, a reduced best-shot game, the dictator game, the prisoner's dilemma, public goods games, and the investment game. Further, the theory explains why subjects behave differently in treatments where they experience the actions of real persons compared to treatments where they face 'actions' caused by a random device. Finally, the theory explains why in bilateral interactions outcomes tend to be ''fair'' whereas in competitive markets even extremely unfair distributions may arise."
Official URL http://www.econ.uzh.ch/wp.html
PDF File Download from ZORA
Export BibTeX
EP3 XML (ZORA)