Reciprocity and gift exchange in markets for credence goods

We study the role of reciprocity in markets where expert-sellers have more information about severity a problem faced by consumer. employ standard experimental credence goods market to introduce possibility for consumers gift expert-seller before diagnostic, is either transferred unconditionally or conditionally on solving problem. find that both types gifts increase frequency consumer-friendly actions relative no gift, but only conditional translate into efficiency gains when consumer faces high-severity This suggests partial alignment incentives via may outweigh kindness motives reciprocal are not directly observed. Using further treatments with surprise exchange, we show withholding expected significantly reduces likelihood behavior whereas sending who do expect one has effect.