When the context backfires: Experimental evidence on Reciprocity

Irani Arráiz (), Syon Bhanot and Carla Calero
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Irani Arráiz: IDB Invest; 1350 New York Ave NW, Washington, DC 20577
Carla Calero: Videnza Consultores. Av. Alberto Alexander 2695, Lima, Peru

Journal of Behavioral Economics for Policy, 2020, vol. 4, issue 1, 29-42

Abstract: In a randomized field experiment in Ecuador, we tested whether triggering the norm of reciprocity increases participation in a business training program. The sample included 793 microentrepreneurs in the provinces of Pichincha and Guayas in Ecuador who were randomly assigned to either receive or not receive a premium chocolate with their invitation to participate. Bank officers personally delivered the invitations/chocolate gift. Surprisingly, we find a negative and significant effect of 8.3 percentage points of the chocolate gift on participation rates. We argue that an unexpected, temporary change in the context triggered a negative response from the entrepreneurs to the gift, which changed the direction of the expected result; thus, the intervention induced negative rather than positive reciprocity.

Keywords: behavioral economics; randomized experiment; field experiment; reciprocity (search for similar items in EconPapers)
JEL-codes: C93 D91 I38 O12 (search for similar items in EconPapers)
Date: 2020
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