Do Unto Others: An Experimental Study of Expectations and Prospective Reciprocation
نویسندگان
چکیده
This experiment shows that Mathew Rabin’s (1993) fairness equilibrium is more descriptive than the relevant null hypothesis, that people’s generosity levels are innate. Participants treated others as they expected others to treat them. Prospective reciprocation creates path dependency in organizations’ cooperation levels. Organization member’s expectations of others’ willingness to cooperate may depend on the outcome of their initial interactions with other firm members. This combination of path dependency and expectation formation opens the cooperation level within an organization to manipulation. Either subsidization or sabotage of initial interactions can manipulate the long-term level of cooperation within organizations. (JEL C72, C91, C92, H41)
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