Rethinking reciprocity

Malmendier, Ulrike, te Velde, Vera L, and Weber, Roberto A. (2014) Rethinking reciprocity. Annual Review of Economics, 6 849-874. doi:10.1146/annurev-economics-080213-041312

Author Malmendier, Ulrike
te Velde, Vera L,
Weber, Roberto A.
Title Rethinking reciprocity
Journal name Annual Review of Economics   Check publisher's open access policy
ISSN 1941-1391
Publication date 2014-08
Year available 2014
Sub-type Article (original research)
DOI 10.1146/annurev-economics-080213-041312
Open Access Status
Volume 6
Start page 849
End page 874
Total pages 26
Place of publication Palo Alto, CA, United States
Publisher Annual Reviews
Collection year 2015
Language eng
Abstract Reciprocal behavioral has been found to play a significant role in many economic domains, including labor supply, tax compliance, voting behavior, and fund-raising. What explains individuals’ tendency to respond to the kindness of others? Existing theories posit internal preferences for the welfare of others, inequality aversion, or utility from repaying others’ kindness. However, recent evidence on the determinants of (unilateral) sharing decisions suggests that external factors such as social pressure are equally important. So far, this second wave of social preference theories has had little spillover to two-sided reciprocity environments, in which one individual responds to the actions of another. We present a novel laboratory reciprocity experiment (the double-dictator game with sorting) and show that failure to account for external motives leads to a significant overestimation of internal motives such as fairness and altruism. The experimental data illustrate the importance of combining reduced-form and structural analyses to disentangle internal and external determinants of prosocial behavior.
Keyword Social preferences
Social pressure
Social image
External and internal motivations
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Non HERDC
School of Economics Publications
Version Filter Type
Citation counts: TR Web of Science Citation Count  Cited 2 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 2 times in Scopus Article | Citations
Google Scholar Search Google Scholar
Created: Wed, 21 Jan 2015, 15:15:25 EST by Alys Hohnen on behalf of School of Economics