The Impact of Social Camparisons of Reciprocity

Simon Gaechter (), Daniele Nosenzo and Martin Sefton
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Simon Gaechter: University of Nottingham
Martin Sefton: University of Nottingham
Authors registered in the RePEc Author Service: Simon Gächter

No 2010-10, Discussion Papers from The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham

Abstract: This paper investigates how social comparison information about referent others (i.e. learning what similar others do and how they are treated) affects reciprocal relationships. Using a three-person gift-exchange game we study how employees’ reciprocity towards an employer is affected by exposure to pay comparison information (what co-workers earn) and effort comparison information (how co-workers perform). We find that pay comparison information does not affect reciprocity. Effort comparison information, however, influences reciprocal relationships in important ways: the ability to observe reciprocal behavior on the part of others strongly affects employees’ reciprocity towards the employer. While our data show that social information in principle may either erode or amplify reciprocal relationships, we find that, on average, social comparisons have a detrimental impact on reciprocity.

Keywords: Reciprocity; gift-exchange; social information; social comparisons; pay comparisons (search for similar items in EconPapers)
JEL-codes: A13 C92 J31 (search for similar items in EconPapers)
Date: 2010-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: The Impact of Social Comparisons on Reciprocity (2012)
Working Paper: The Impact of Social Comparisons on Reciprocity (2008)
Working Paper: The Impact of Social Comparisons on Reciprocity (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:not:notcdx:2010-10

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