Fairness and Retaliation: The Economics of Reciprocitys
Ernst Fehr and
Simon Gaechter
Authors registered in the RePEc Author Service: Simon Gächter
No 40, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich
Abstract:
This paper shows that reciprocity has powerful implications for many economic domains. It is an important determinant in the enforcement of contracts and social norms and enhances the possibilities of collective action greatly. Reciprocity may render the provision of explicit incentive inefficient because the incentives may crowd out voluntary co-operation. It strongly limits the effects of competition in markets with incomplete contracts and gives rise to noncompetitive wage differences. Finally, reciprocity it is also a strong force contributing to the existence of incomplete contracts.
Keywords: Reciprocity; Fairness; Social Norms; Contract Enforcement; Collective Action; Work Motivation; Labor Markets (search for similar items in EconPapers)
JEL-codes: C92 D64 H40 J30 J50 J64 K10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-evo, nep-exp, nep-ind and nep-mic
References: Add references at CitEc
Citations: View citations in EconPapers (243)
Downloads: (external link)
https://www.zora.uzh.ch/id/eprint/51942/1/iewwp040.pdf (application/pdf)
Related works:
Journal Article: Fairness and Retaliation: The Economics of Reciprocity (2000) ![Downloads](/downloads_econpapers.gif)
Working Paper: Fairness and Retaliation: The Economics of Reciprocity (2000) ![Downloads](/downloads_econpapers.gif)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:zur:iewwpx:040
Access Statistics for this paper
More papers in IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich
Bibliographic data for series maintained by Severin Oswald (severin.oswald@ub.uzh.ch).