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iewwp006 (1)

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    Institute for Empirical Research in Economics

    University of Zurich

    Working Paper Series

    ISSN 1424-0459

    Working Paper No. 6

    A Theory of Reciprocity

    Armin Falk and Urs Fischbacher

    July 2000

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    YY ZZ

    8

    20

    0

    0

    0

    10

    0

    8

    20

    0

    0

    0

    5

    5

    Game (b)Game (a)

    X X

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 0.25 0.5 0.75 1

    offer c

    acceptance

    probability

    c0

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    0

    0.1

    0.2

    0.3

    0.4

    0.5

    0 1 2 3 4reciprocity parameter of the responder

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 0.25 0.5 0.75 1

    offer c

    random offer

    intentional offer

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 0.2 0.4 0.6 0.8 1wage

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 1 2 3 4

    reciprocity parameter of the worker ( !2)

    effort

    w=.5

    w=.3

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 1 2 3 4

    reciprocity parameter of player 2 (worker)

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 0.2 0.4 0.6 0.8 1wage

    intentional wage

    random wage

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    YY ZZ

    8

    2

    0

    0

    0

    0

    2

    8

    8

    2

    0

    0

    0

    0

    5

    5

    Reduced best-shot gameReduced ultimatum game

    X X

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 1 2 3 4

    reciprocity parameter of player 2

    Best-shot Game

    Ultimatum Game

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    1-p

    Y

    p

    q

    1-a

    a

    X

    L

    l

    R

    r

    1-c

    c

    1-q

    1-b

    b

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    0

    0.2

    0.4

    0.6

    0.8

    1

    0 5 10 15 20reciprocity parameter of player 2

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