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Homo Reciprocans: Survey Evidence on Prevalence, Behavior and Success

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Listed:
  • Dohmen, Thomas

    (University of Bonn)

  • Falk, Armin

    (University of Bonn)

  • Huffman, David B.

    (University of Pittsburgh)

  • Sunde, Uwe

    (University of Munich)

Abstract

Experimental evidence has convincingly shown the existence of reciprocal inclinations, i.e., a tendency for people to respond in-kind to hostile or kind actions. Little is known, however, about: (i) the prevalence of reciprocity in the population, (ii) individual determinants of reciprocity, (iii) the correlation between positive and negative inclinations within person, and (iv) consequences of reciprocal inclinations for wages, subjective well-being, friendships and other economic and social outcomes. Answering these questions requires moving out of the lab and using a large and representative subject pool, which combines information about subjects’ reciprocal inclinations with extensive socioeconomic background information. In this paper we measure the reciprocal inclinations of 21,000 individuals. We show that most people state reciprocal inclinations, in particular in terms of positive reciprocity. However, there is substantial heterogeneity in the degree of reciprocity, and quite surprisingly, only a weak correlation between positive and negative reciprocity for an individual. In terms of determinants, being female, and increasing age, lead to greater positive and less negatively reciprocal tendencies. Taller people are more positively reciprocal, but height has no impact on negative reciprocity. The asymmetric impact of these determinants provides further indication that positive and negative reciprocity are fundamentally different traits, rather than the outcome of a single underlying tendency. In terms of economic implications, we provide the first evidence using a large representative survey that corroborates an important hypothesis arising from laboratory experiments: Positively reciprocal workers are in fact paid more, and exert greater effort, on the job. Moreover, positively reciprocal people are more likely to be employed, report having more close friends, and have a higher overall level of life satisfaction. In this sense, Homo Reciprocans – in the positive domain – is in fact more successful than his or her non-reciprocal fellows.

Suggested Citation

  • Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2006. "Homo Reciprocans: Survey Evidence on Prevalence, Behavior and Success," IZA Discussion Papers 2205, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp2205
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    Cited by:

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    2. Holger Bonin & Armin Falk & Hilmar Schneider, 2007. "Workfare – praktikabel und gerecht," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 60(04), pages 33-37, February.
    3. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2008. "Representative Trust And Reciprocity: Prevalence And Determinants," Economic Inquiry, Western Economic Association International, vol. 46(1), pages 84-90, January.
    4. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(2), pages 645-677.
    5. Herrmann Benedikt & Simon Gachter, 2006. "The limits of self-governance in the presence of spite: Experimental evidence from urban and rural russia," Artefactual Field Experiments 00048, The Field Experiments Website.
    6. Herne, Kaisa & Lappalainen, Olli & Kestilä-Kekkonen, Elina, 2013. "Experimental comparison of direct, general, and indirect reciprocity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 38-46.
    7. Dur, Robert & Non, Arjan & Roelfsema, Hein, 2010. "Reciprocity and incentive pay in the workplace," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 676-686, August.
    8. Traxler, Christian & Winter, Joachim, 2012. "Survey evidence on conditional norm enforcement," European Journal of Political Economy, Elsevier, vol. 28(3), pages 390-398.
    9. Christian Pfeifer, 2010. "Impact of wages and job levels on worker absenteeism," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(1), pages 59-72, March.
    10. Bindewald, Eckart & Atallah, Shady S., 2017. "Achieving multiple goals via voluntary efforts and motivation asymmetry," Ecological Modelling, Elsevier, vol. 354(C), pages 37-48.
    11. Max Albert & Vanessa Mertins, 2008. "Participation and Decision Making: A Three-person Power-to-take Experiment," MAGKS Papers on Economics 200805, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    12. Nathan Fiala, 2013. "Skills in the Marketplace: Individual Characteristics and Bargaining Ability in a Field-Based Experiment," Discussion Papers of DIW Berlin 1326, DIW Berlin, German Institute for Economic Research.
    13. Bonein, Aurélie & Serra, Daniel, 2007. "Another experimental look at reciprocal behavior: indirect reciprocity," MPRA Paper 3257, University Library of Munich, Germany, revised Mar 2007.
    14. Laura Schräpler & Jörg-Peter Schräpler & Gert G. Wagner, 2019. "Wie (in)stabil ist die Lebenszufriedenheit? Eine Sequenzanalyse mit Daten des Sozio-oekonomischen Panels (SOEP)," SOEPpapers on Multidisciplinary Panel Data Research 1045, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    Keywords

    wage regression; SOEP; trust; reciprocity; unemployment; happiness;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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