A theory of sequential reciprocity

Many experimental studies indicate that people are motivated by reciprocity. Rabin (1993) develops techniques for incorporating such concerns into game theory and economics. His model, however, does not fare well when applied to situations with an interesting dynamic structure (like many experimental games), because it is developed for normal form games in which information about the sequential structure of a strategic situation is suppressed. In this paper we develop a theory of reciprocity for extensive games in which the sequential structure of a strategic situation is made explicit. We propose a new solution concept— sequential reciprocity equilibrium—which is applicable to extensive games, and we prove a general equilibrium existence result. The model is applied in several examples, including some well known experimental games like the Ultimatum game and the Sequential Prisoners’ Dilemma.(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract was borrowed from another version of this item.)(This abstract wa(This abstract was borrowed from another version of this item.)

[1]  A. Sen,et al.  Utilitarianism and Welfarism , 1979 .

[2]  张谷 实验经济学(Experimental Economics)研究思路及成果应用简述 , 1994 .

[3]  David I. Laibson,et al.  Dynamic Choices of Hyperbolic Consumers , 2001 .

[4]  M. Greenberg,et al.  Effect of intentionality on willingness to reciprocate a favor , 1972 .

[5]  V. Smith,et al.  Social Distance and Other-Regarding Behavior in Dictator Games: Reply , 1999 .

[6]  J. Geanakoplos,et al.  Psychological games and sequential rationality , 1989 .

[7]  M. Dufwenberg,et al.  Reciprocity and wage undercutting , 2000 .

[8]  H. J. Jacobsen,et al.  The One-Shot-Deviation Principle for Sequential Rationality , 1996 .

[9]  D. Kahneman,et al.  CHAPTER EIGHT. Fairness as a Constraint on Profit Seeking: Entitlements in the Market , 2004 .

[10]  R. Rosenthal Games of perfect information, predatory pricing and the chain-store paradox , 1981 .

[11]  Jörgen W. Weibull,et al.  The Mass-Action Interpretation of Nash Equilibrium , 1995 .

[12]  J. Kagel,et al.  Handbook of Experimental Economics , 1997 .

[13]  E. Fehr,et al.  Wage Rigidity in a Competitive Incomplete Contract Market , 1999, Journal of Political Economy.

[14]  E. Fehr,et al.  Reciprocity as a contract enforcement device: experimental evidence , 1997 .

[15]  T. Bewley,et al.  A Depressed Labor Market as Explained by Participants , 1995 .

[16]  J. Andreoni IMPURE ALTRUISM AND DONATIONS TO PUBLIC GOODS: A THEORY OF WARM-GLOW GIVING* , 1990 .

[17]  E. Fehr,et al.  Does Fairness Prevent Market Clearing? An Experimental Investigation , 1993 .

[18]  Ernst Fehr,et al.  Reciprocal Fairness and Noncompensating Wage Differentials , 1994 .

[19]  D. Levine Modeling Altruism and Spitefulness in Experiments , 1998 .

[20]  J. Nash,et al.  NON-COOPERATIVE GAMES , 1951, Classics in Game Theory.

[21]  M. Rabin Psychology and Economics , 1997 .

[22]  A. Tesser,et al.  Some determinants of gratitude. , 1968, Journal of personality and social psychology.

[23]  R. H. Strotz Myopia and Inconsistency in Dynamic Utility Maximization , 1955 .

[24]  Your Morals are Your Moods , 2001 .

[25]  Georg Kirchsteiger,et al.  The role of envy in ultimatum games , 1994 .

[26]  W. Güth,et al.  Presents or investments? An experimental analysis , 2000 .

[27]  Werner Güth,et al.  Presents or Investments , 1998 .

[28]  C. Plott psychology and economics , 1990 .

[29]  L. Berkowitz,et al.  Reciprocity and responsibility reactions to prior help. , 1966, Journal of personality and social psychology.

[30]  R. McKelvey,et al.  An experimental study of the centipede game , 1992 .

[31]  M. Rabin Published by: American , 2022 .

[32]  E. Vandamme Stability and perfection of nash equilibria , 1987 .

[33]  George A. Akerlof Labor Contracts as Partial Gift Exchange , 1982 .

[34]  E. Fehr,et al.  Gift Exchange and Reciprocity in Competitive Experimental Markets , 1995 .

[35]  P. Reny Backward Induction, Normal Form Perfection and Explicable Equilibria , 1992 .

[36]  G. Charness Attribution and reciprocity in a simulated labor market: An experimental investigation , 1996 .

[37]  Martin Sefton,et al.  The Sequential Prisoner's Dilemma: Evidence on Reciprocation , 2001 .

[38]  S. Gächter,et al.  Reputation and Reciprocity: Consequences for the Labour Relation , 2001, SSRN Electronic Journal.

[39]  Martin Shubik,et al.  REVENGE AND RATIONAL PLAY , 1988 .

[40]  Ernst Fehr,et al.  Insider Power, Wage Discrimination, and Fairness , 1994 .

[41]  Joyce E. Berg,et al.  Trust, reciprocity and social history’, Games and Economic Behaviour, . , 1995 .

[42]  Gary E. Bolton,et al.  ERC: A Theory of Equity, Reciprocity, and Competition , 2000 .

[43]  E. Fehr A Theory of Fairness, Competition and Cooperation , 1998 .

[44]  Ernst Fehr,et al.  Reciprocity as a Contract Enforcement Device , 2001 .

[45]  William Robert Nelson,et al.  Incorporating Fairness into Game Theory and Economics: Comment , 2001 .

[46]  Janet L. Yellen,et al.  Fairness and Unemployment , 1988 .

[47]  Daniel Kahneman,et al.  Fairness as a Constraint on Profit Seeking , 1986 .

[48]  Janet L. Yellen,et al.  The Fair Wage-Effort Hypothesis and Unemployment , 1990 .

[49]  V. Smith,et al.  Social distance and other-regarding behavior in dictator games , 2000 .

[50]  S. Blount When Social Outcomes Aren't Fair: The Effect of Causal Attributions on Preferences , 1995 .

[51]  E. Damme Stability and perfection of Nash equilibria , 1987 .

[52]  M. Rabin,et al.  UNDERSTANDING SOCIAL PREFERENCES WITH SIMPLE TESTS , 2001 .

[53]  Joyce E. Berg,et al.  Trust, Reciprocity, and Social History , 1995 .

[54]  E. Fehr,et al.  Fairness and Retaliation: The Economics of Reciprocity , 2000, SSRN Electronic Journal.

[55]  Armin Falk,et al.  A Theory of Reciprocity , 2001, Games Econ. Behav..

[56]  Martin Dufwenberg,et al.  Measuring Beliefs in an Experimental Lost Wallet Game , 2000, Games Econ. Behav..

[57]  B. Frey,et al.  Social Distance and Other-Regarding Behavior in Dictator Games: Comment , 1999 .

[58]  Martin Dufwenberg,et al.  Marital investments, time consistency and emotions , 2002 .

[59]  T. Bewley Why Wages Don't Fall during a Recession , 1999 .