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Direct versus Indirect Reciprocity: An Experiment

Martin Dufenberg, Uri Gneezy, Werner G³th and Eric Van Demme
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Martin Dufenberg: Department of Stockholm, Stockholm University
Werner G³th: Department of Economics, Humboldt-University Berlin
Eric Van Demme: Center for Economic Research, Tilburg University

Authors registered in the RePEc Author Service: Werner Güth ()

Homo Oeconomicus, 2001, vol. 18, 19-30

Abstract: In this paper we report experimental results that relate to the recprocity experiment of Berg, Dickhaut, and McCabe (1995). We consider direct reciprocity, which means to respond in kind to another person, and indirect reciprocity, understoode as rewarding someone else. Another variation conerns the information about the multiplier of donations where we compare the benchmark case with a commonly known multiplier to a condition where the multiplier is known with cerntainty only to donors. Questions which we try to answer are: Will indirect reciprocity induce higher or lower donations?, will donors with the high multiplier "hide behind the small one?", how do receivers respond to different situations?

Date: 2001
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Handle: RePEc:hom:homoec:v:18:y:2001:p:19-30