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Measuring Motivations for the Reciprocal Responses Observed in a Simple Dilemma Game

Published online by Cambridge University Press:  14 March 2025

Gary E. Bolton*
Affiliation:
Department of Management Science and Information Systems, 310 Beam, Penn State University, University Park, PA 16802, USA
Jordi Brandts*
Affiliation:
Institut d'Anàlisi Economica (CSIC), Campus UAB, 08193 Bellaterra, Barcelona, Spain
Axel Ockenfels*
Affiliation:
Faculty of Economics and Management, University of Magdeburg, Postfach 4120 D-39016 Magdeburg, Germany

Abstract

A reciprocal action is an action meant to have a similar influence on another's payoff as another's action has on one's own. One hypothesis asserts that reciprocal action is triggered by the reciprocator's belief that another's action was good or ill intended. The other hypothesis says that the reciprocator is simply acting to implement fixed preferences over payoff allocations. We report on an experiment that allows us to study both positive (reward) and negative (punishment) reciprocal action in a single framework. Knowing the preferences for payoff allocations is sufficient to account for nearly all the reciprocal action we observe in our experiment.

Type
Research Article
Copyright
Copyright © 1998 Economic Science Association

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Footnotes

*

Axel Ockenfels, Univ. of Magdeburg, Faculty of Econ. & Mgnt., Postfach 4120, D-39016 Magdeburg, Germany.

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