Intention-Based Economic Theories of Reciprocity

Revista de Economia del Rosario, Vol. 5, No. 2, 2002

28 Pages Posted: 6 Sep 2006

Abstract

In recent years, several experiments have shown individuals exhibit authentic reciprocal behaviour in anonymous one-shot interactions. As reciprocity has been shown to be relevant in several economic fields, there have also been several attempts to model reciprocal bahaviour. I review the intention-based models of reciprocity and present an example of teacher management in the public sector in which the government offers an incentive scheme to implement a program. The incentive scheme has a prisoner's dilemma structure. In both simultaneous and sequential games, equilibrium results may differ from those predicted by standard theory.

Keywords: Game theory, psychological games, intention-based models, reciprocity

JEL Classification: C700

Suggested Citation

Cortes, Darwin F., Intention-Based Economic Theories of Reciprocity. Revista de Economia del Rosario, Vol. 5, No. 2, 2002, Available at SSRN: https://ssrn.com/abstract=928494

Darwin F. Cortes (Contact Author)

Universidad del Rosario ( email )

Calle 12 No. 6-25
Bogota, DC
Colombia