Managerial Payoff and Gift-Exchange in the Field

Florian Englmaier and Stephen Leider ()

No 178, Rationality and Competition Discussion Paper Series from CRC TRR 190 Rationality and Competition

Abstract: We conduct a field experiment where we vary both the presence of a gift-exchange wage and the effect of the worker's effort on the manager's payoff. Results indicate a strong complementarity between the initial wage-gift and the agent's ability to "repay the gift". We control for differences in ability and reciprocal inclination and show that gift-exchange is more effective with more reciprocal agents. We present a principal-agent model with reciprocal subjects that motivates our findings. Our results help to reconcile the conflicting evidence on the efficacy of gift-exchange outside the lab.

Keywords: incentives; field experiments; gift-exchange; reciprocity (search for similar items in EconPapers)
JEL-codes: C91 J33 M52 (search for similar items in EconPapers)
Date: 2019-08-07
New Economics Papers: this item is included in nep-exp, nep-hrm and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Managerial Payoff and Gift-Exchange in the Field (2020)
Working Paper: Managerial Payoff and Gift-Exchange in the Field (2020)
Working Paper: Managerial Payoff and Gift Exchange in the Field (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:rco:dpaper:178

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