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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
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
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
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
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
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
usually have incomplete information about fairness norms held by the other party - fairness norms that affect the other party …'s willingness to pay (WTP) or willingness to accept (WTA). Importantly, these fairness norms may depend on how strongly the … participants can be divided into three groups corresponding to three different fairness norms: negative types whose WTP and WTA are …
Persistent link: https://www.econbiz.de/10011633871