A Theory Of Sequential Reciprocity 2020 :: theswanfactory.com

Introduction In this paper, we develop a formal theory of reciprocity. According to this theory, reciprocity is a behavioral response to perceived kindness and unkindness, where kind- ness comprises both distributional fairness as well as fairness intentions. In this paper we develop a theory of reciprocity for extensive games in which the sequential structure of a strategic situation is made explicit. We propose a new solution concept— sequential reciprocity equilibrium—which is applicable to extensive games, and we prove a general equilibrium existence result. In this paper we extend Dufwenberg and Kirchsteiger's model of sequential reciprocity 2004 to groups of individuals and define a new "sequential group reciprocity equilibrium" for which we prove its existence. We study the case of two games with two players in each game, where each player belongs to the same group as a player in the other game. players with their solution concept of ‘‘sequential reciprocity equilibrium’’ SRE from now on. However, these models assume that players do not care about the outcomes of games in which they are not involved. In the real world individuals form emotions of fairness based on the treatment of others and these emotions can affect the.

A theory of sequential reciprocity. Martin Dufwenberg and Georg Kirchsteiger Games and Economic Behavior, 2004, vol. 47, issue 2, 268-298 Date: 2004 References: View references in EconPapers View complete reference list from CitEc Citations: View citations in EconPapers 795 Track citations by. We propose a new solution concept-sequential reciprocity equilibrium-which is applicable to extensive games, and we prove a general equilibrium existence result. The model is applied in several examples, including some well known experimental games like the Ultimatum game and. We experimentally test Dufwenberg and Kirchsteiger’s 2004 theory of sequential reciprocity in a sequential prisoner’s dilemma SPD and a mini-ultimatum game MUG. Data on behavior and firstand second-order beliefs allow us to classify each subject’s behavior as a material best response, a reciprocity best response, both, or none. M. Dufwenberg and G. Kirchsteiger, “A theory of sequential reciprocity,” Games and Economic Behavior, Vol. 47, pp. 269-298, 2004.

Vertical reciprocity is therefore modeled as the propensity of taxpayers to retaliate against an uncooperative government by means of reducing the level of tax compliance. This allows us to identify feedback mechanisms between horizontal and vertical reciprocity. the modeling of reciprocity in sequential games and we argue that whether higher order beliefs should be updated in a game depends on the structure of the game. To incor-porate this novel feature, we propose a re nement of the solution concept, sequential reciprocity equilibrium, developed by Dufwenberg and Kirchsteiger 2004 and apply it. Dufwenberg and Kirchsteiger s 2004 extends Rabin s 1993 theory of reciprocity in a dynamic sense, introducing a rule of revision for player s beliefs. The Sequential Reciprocity Equilibrium [SRE] they define can be dynamically inconsistent. In this article it is argued that such dynamic inconsistency is not intrinsically related to issues of reciprocity, but rather to the particular way.

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