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When the context backfires: Experimental evidence on Reciprocity

Author

Listed:
  • Irani Arráiz

    (IDB Invest; 1350 New York Ave NW, Washington, DC 20577)

  • Syon P. Bhanot

    (Swarthmore College. 500 College Ave, Swarthmore, PA 19081)

  • Carla Calero

    (Videnza Consultores. Av. Alberto Alexander 2695, Lima, Peru)

Abstract

In a randomized field experiment in Ecuador, we tested whether triggering the norm of reciprocity increases participation in a business training program. The sample included 793 microentrepreneurs in the provinces of Pichincha and Guayas in Ecuador who were randomly assigned to either receive or not receive a premium chocolate with their invitation to participate. Bank officers personally delivered the invitations/chocolate gift. Surprisingly, we find a negative and significant effect of 8.3 percentage points of the chocolate gift on participation rates. We argue that an unexpected, temporary change in the context triggered a negative response from the entrepreneurs to the gift, which changed the direction of the expected result; thus, the intervention induced negative rather than positive reciprocity.

Suggested Citation

  • Irani Arráiz & Syon P. Bhanot & Carla Calero, 2020. "When the context backfires: Experimental evidence on Reciprocity," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 4(1), pages 29-42, December.
    • Handle: RePEc:beh:jbepv1:v:4:y:2020:i:1:p:29-42
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    behavioral economics; randomized experiment; field experiment; reciprocity;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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