Microeconomics SeminarReciprocity: On the Relative Importance and Interaction of Intention and Outcome EffectsSimon Dato (European Business School), 17:15 -- 18:30, Room 0079 (VMP 5)

26 June 2025, 5:15 pm

Abstract: Outcomes and perceived intentions influence how individuals reciprocate others' actions. Using an experiment to disentangle the impact of outcomes and intentions, this paper provides first evidence about the relative importance and interaction of these determinants of reciprocal behavior. In our data, outcomes' impact on reciprocal behavior dominates that of intentions. Furthermore, intentions and outcomes interact in inducing reciprocity: the impact of a good outcome on reciprocal behavior is magnified by kind intentions. To uncover what drives outcome and intention effects, we elicit social norms from third parties and provide evidence of their significant explanatory power. However, comparing a social-preference-based explanation to the social-norm-based explanation reveals that the former explains choices better than the latter.