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On the costs of kindness: An experimental investigation of guilty minds and negative reciprocity

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  • Schubert, Manuel
  • Graf Lambsdorff, Johann

Abstract

Psychology has inspired economics to recognize intentions in addition to outcomes as being relevant for utility and behavior. Reciprocal behavior, in particular, has been related to the kindness of chosen actions and how kindness can be derived from the benefits obtained in unchosen alternatives. This study shows that a richer understanding of kindness is required. We carry out ultimatum games with a reduced space of strategies and observe that subjects refrain from negative reciprocity (rejecting proposals) if an unchosen alternative was costly to the proposer. Second, we find proposers to anticipate this behavior. Not only the benefits are relevant for assessments of kindness, the costs of kindness matter as well.

Suggested Citation

  • Schubert, Manuel & Graf Lambsdorff, Johann, 2012. "On the costs of kindness: An experimental investigation of guilty minds and negative reciprocity," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-64-12, University of Passau, Faculty of Business and Economics.
    • Handle: RePEc:zbw:upadvr:v6412
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    References listed on IDEAS

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    1. Schubert, Manuel, 2012. "Deeds rather than omissions: How intended consequences provoke negative reciprocity," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-65-12, University of Passau, Faculty of Business and Economics.

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    More about this item

    Keywords

    intentions; reciprocity; fairness;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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