Skip to main content

Trust, Fear, Reciprocity, and Altruism: Theory and Experiment

  • Chapter
Developments on Experimental Economics

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 590))

  • 1128 Accesses

Abstract

This paper describes central topics in our research program on social preferences. The discussion covers experimental designs that discriminate among alternative components of preferences such as unconditional altruism, positive reciprocity, trust (in positive reciprocity), negative reciprocity, and fear (of negative reciprocity). The paper describes experimental data on effects of social distance and decision context on reciprocal behavior and male vs. female and group vs. individual differences in reciprocity. The exposition includes experimental designs that provide direct tests of alternative models of social preferences and summarizes implications of data for the models. The discussion reviews models of other-regarding preferences that are and are not conditional on others revealed intentions and the implications of data for these models.

Noah Langdale Jr Eminent Scholar Chair and Director of the Experimental Economics Center (ExCEN), Georgia State University. This paper was written while the author was a Visiting Scholar at the Workshop in Political Theory and Policy Analysis, Indiana University.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Abbink, Klaus, Irlenbusch, Bernd, and Renner, Elke (2000), “The Moonlighting Game: An Empirical Study on Reciprocity and Retribution.” Journal of Economic Behavior and Organization, 42, pp. 265–77.

    Article  Google Scholar 

  2. Berg, Joyce, Dickhaut, John, and McCabe, Kevin (1995), “Trust, Reciprocity, and Social History,” Games and Economic Behavior, 10, pp. 122–42.

    Article  Google Scholar 

  3. Bolton, Gary E. and Ockenfels, Axel (2000), “ERC: A Theory of Equity, Reciprocity and Competition.” American Economic Review, 90, pp. 166–93.

    Article  Google Scholar 

  4. Bolton, Gary E. and Zwick, Rami (1995), “Anonymity versus Punishment in Ultimatum Bargaining,” Games and Economic Behavior, 10, pp. 95–121.

    Article  Google Scholar 

  5. Charness, Gary and Rabin, Matthew (2002), “Social Preferences: Some Simple Tests and a New Model,” Quarterly Journal of Economics, 117, pp. 817–69.

    Article  Google Scholar 

  6. Cherry, Todd L., Frykblom, Peter, and Shogren, Jason (2002), “Hardnose the Dictator,” American Economic Review, 92, pp. 1218–21.

    Article  Google Scholar 

  7. Cox, James C. (2002), “Trust, Reciprocity, and Other-Regarding Preferences: Groups vs. Individuals and Males vs. Females,” in R. Zwick and A. Rapoport, (eds.), Experimental Business Research, vol. I, Kluwer Academic Publishers.

    Google Scholar 

  8. Cox, James C. (2003), “Trust and Reciprocity: Implications of Game Triads and Social Contexts,” University of Arizona Discussion Paper Number 00-11.

    Google Scholar 

  9. Cox, James C. (2004), “How to Identify Trust and Reciprocity,” Games and Economic Behavior, 46, no. 2, pp. 260–281

    Article  Google Scholar 

  10. Cox, James C. and Deck, Cary A. (2005), “On the Nature of Reciprocal Motives,” Economic Inquiry, 43, no. 3, pp. 623–635.

    Article  Google Scholar 

  11. Cox, James C. and Deck, Cary A. (2006), “When are Women More Generous than Men?”, Economic Inquiry, 44, no. 6, pp. 587–598.

    Article  Google Scholar 

  12. Cox, James C. and Deck, Cary A. (2006), “Assigning Intentions when Actions are Unobservable: the Impact of Trembling in the Trust Game,” Southern Economic Journal, 73, no. 2, pp. 307–314.

    Article  Google Scholar 

  13. Cox, James C., Friedman, Daniel and Gjerstad, Steven (forthcoming), “A Tractable Model of Reciprocity and Fairness,” Games and Economic Behavior.

    Google Scholar 

  14. Cox, James C., Friedman, Daniel, and Sadiraj, Vjollca (2006), “Revealed Altruism,” Georgia State University, ExCEN working paper number 2006-09.

    Google Scholar 

  15. Cox, James C., Sadiraj, Klarita, and Sadiraj, Vjollca (forthcoming), “Implications of Trust, Fear, and Reciprocity for Modeling Economic Behavior,” Experimental Economics.

    Google Scholar 

  16. Cox, James C. and Sadiraj, Vjollca (2007), “On Modeling Voluntary Contributions to Public Goods,” Public Finance Review, 35, no. 2, pp. 311–332.

    Article  Google Scholar 

  17. Cox, James C. and Sadiraj, Vjollca (2006), “Direct Tests of Models of Social Preferences and a New Model,” Georgia State University, ExCEN working paper number 2006-13.

    Google Scholar 

  18. Falk, Armin., Fehr, Ernst, and Fischbacher, Urs (2003), “On the Nature of Fair Behavior.” Economic Inquiry, 41, pp. 20–6.

    Article  Google Scholar 

  19. Fehr, Ernst and Gächter, Simon (2000), “Fairness and Retaliation: The Economics of Reciprocity.” Journal of Economic Perspectives, Summer, 14, pp. 159–81.

    Article  Google Scholar 

  20. Fehr, Ernst and Schmidt, Klaus M. (1999), “A Theory of Fairness, Competition, and Cooperation,” Quarterly Journal of Economics, 114, pp. 817–68.

    Article  Google Scholar 

  21. Gale, John, Binmore, Kenneth G. and Samuelson, Larry (1995), “Learning to Be Imperfect: The Ultimatum Game,” Games and Economic Behavior, 8, pp. 56–90.

    Article  Google Scholar 

  22. Hoffman, Elizabeth, McCabe, Kevin, Shachat, Keith, and Smith, Vernon L. (1994), “Preferences, Property Rights, and Anonymity in Bargaining Games,” Games and Economic Behavior, 7, pp. 346–80.

    Article  Google Scholar 

  23. Huck, Steffen, Müller, Wieland, and Normann, Hans-Theo (2001), “Stackelberg Beats Cournot: On Collusion and Efficiency in Experimental Markets,” Economic Journal, 111, pp. 749–66.

    Article  Google Scholar 

  24. McCabe, Kevin A., and Smith, Vernon L. (2000), “A Comparison of Naive and Sophisticated Subject Behavior with Game Theoretic Predictions.” Proceedings of the National Academy of Sciences, 97, pp. 3777–81.

    Article  Google Scholar 

  25. Samuelson, Paul A. (1947), Foundations of Economic Analysis (Harvard University Press, Cambridge, MA).

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2007 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Cox, J.C. (2007). Trust, Fear, Reciprocity, and Altruism: Theory and Experiment. In: Oda, S.H. (eds) Developments on Experimental Economics. Lecture Notes in Economics and Mathematical Systems, vol 590. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-68660-6_5

Download citation

Publish with us

Policies and ethics