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The Economics of Reciprocity : Evidence and Theory

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2002

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Falk, Armin

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FREEMAN, Richard B., ed.. Inequality Around the World. Basingstoke: Palgrave Macmillan, 2002, pp. 207-233. IEA conference volume. 134. ISBN 978-0-333-77355-0

Zusammenfassung

In many social sciences, particularly in economics, a fundamental assumption is that people are rational and selfish. According to this assumption people maximize their material well-being and ignore the well-being of others. In this chapter, we question the omnipresence of the homo economicus as assumed by conventional economic theory. We review empirical evidence, which impressively suggests that reciprocity is a powerful determinant of human behaviour. Moreover, we demonstrate that reciprocity can fruitfully be incorporated into game theory and economic modelling in general. With our model it is possible to formalize the concept of reciprocity and to organize the empirical evidence.
Financial support by the Swiss National Science Foundation (Project 12–43590.95) and by the MacArthur Foundation (Network on Economic Environments and the Evolution of Individual Preferences and Social Norms) is gratefully acknowledged. We thank Sam Bowles, Herbert Gintis, and the participants of the IEA Congress, Buenos Aires 1999, and particularly Simon Gächter, for helpful discussions.

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ISO 690FALK, Armin, Urs FISCHBACHER, 2002. The Economics of Reciprocity : Evidence and Theory. In: FREEMAN, Richard B., ed.. Inequality Around the World. Basingstoke: Palgrave Macmillan, 2002, pp. 207-233. IEA conference volume. 134. ISBN 978-0-333-77355-0
BibTex
@incollection{Falk2002Econo-39968,
  year={2002},
  title={The Economics of Reciprocity : Evidence and Theory},
  number={134},
  isbn={978-0-333-77355-0},
  publisher={Palgrave Macmillan},
  address={Basingstoke},
  series={IEA conference volume},
  booktitle={Inequality Around the World},
  pages={207--233},
  editor={Freeman, Richard B.},
  author={Falk, Armin and Fischbacher, Urs}
}
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