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evidence that they also encourage reciprocity. Keyword(s): Reciprocity; Retribution; Fairness; Non-binding contracts …-shot experiments were conducted with and without the possibility of making non-binding contracts beforehand. We find that retribution … is much more compelling than reciprocity. Although contracts are not binding they increase trust, but we do not find …
Persistent link: https://www.econbiz.de/10014141311
We examine, experimentally and theoretically, how communication within a partnership may mitigate the problem (highlighted in contract theory) of hidden action. What is the form and content of the communication? Which model of decision-making can capture the impact of communication? We consider...
Persistent link: https://www.econbiz.de/10005645507
Recently developed models of fairness can explain a wide variety of seemingly contradictory facts. The most … controversial and yet unresolved issue in the modeling of fairness preferences concerns the behavioral relevance of fairness … intentions. Intuitively, fairness intentions seem to play an important role in economic relations, political struggles and legal …
Persistent link: https://www.econbiz.de/10005627833
exclusively based on preferences over the distribution of material payoffs. Models that take into account players’ fairness …
Persistent link: https://www.econbiz.de/10005627957
The perception of fairness of an offer in ultimatum type games may not only depend upon the distributional aspects of … ultimatum type game that affects perception of fairness. Two games are put to test. In both games, a proposer has two available …
Persistent link: https://www.econbiz.de/10014221817
Intention-based models of reciprocity argue that people assess kindness by measuring the intended consequences of … alternatives and realized payoffs. Aggregate results suggest that intended consequences only weakly matter for negative reciprocity … invariant to intended consequences of actual behavior. -- Intentions ; reciprocity ; kindness ; gender …
Persistent link: https://www.econbiz.de/10009557630
We experimentally investigate reference group formation and the impact of social comparisons in a three-player ultimatum game. The players compete in a real-effort task for the role of the proposer. The role of the responder is randomly allocated to one of the other two participants. The third...
Persistent link: https://www.econbiz.de/10010662455
To explain potential sources of wage rigidity this article analyzes a model of reciprocal kindness applied to a repeated ultimatum game with changing and nonzero conflict payoffs. The model is also tested in a laboratory experiment. The results are compatible with the rentsharing approach to...
Persistent link: https://www.econbiz.de/10005765137
incompleteness and relational nature of most employment contracts and (b) the existence of reference-dependent fairness concerns … among a substantial share of the population into account. Theory shows and experiments confirm that, even if fairness … fairness on effort, derive predictions from our approach for entry-level wages and incumbent workers’ wages, confront these …
Persistent link: https://www.econbiz.de/10008765247
This study extends a bilateral gift exchange experiment by Clark et al. (2010) who investigate how feedback of information about wages paid in the market affects both employers' wage setting and workers' performance. We provide either quantitative or qualitative information on the average wage...
Persistent link: https://www.econbiz.de/10010304285