Abstract

http://ssrn.com/abstract=384589
 
 

References (12)



 
 

Citations (2)



 


 



The Limits of Reciprocity for Social Cooperation


Vincy Fon


George Washington University - Department of Economics

Francesco Parisi


University of Minnesota - Law School; University of Bologna

2003

George Mason Law & Economics Research Paper No. 03-08

Abstract:     
Reciprocity constraints facilitate the achievement of cooperative outcomes in many game-theoretic settings. Yet, in some situations the equilibrium induced by a reciprocity constraint may not be socially optimal. After presenting the case in which reciprocity yields privately and socially optimal levels of cooperation, this paper identifies the conditions under which reciprocity generates inefficient cooperation. Two groups of cases are presented. In one group reciprocity undershoots (i.e., the parties cooperate less than is socially optimal). In the other, more puzzling case, reciprocity constraints overshoot (i.e., the parties are induced to cooperate more than is socially optimal). This paper identifies the conditions for such occurrences. The paper then examines the ability of a reciprocity constraint to induce a reciprocal social optimum, where a social optimum requires equal levels of effort by the two parties, and identifies situations where reciprocity fails to induce such an optimum.

Number of Pages in PDF File: 25

Keywords: Reciprocity, Cooperation, Conditions for Social Optimum

JEL Classification: K10, D70, C7, Z13

working papers series


Download This Paper

Date posted: March 4, 2003  

Suggested Citation

Fon, Vincy and Parisi, Francesco, The Limits of Reciprocity for Social Cooperation (2003). George Mason Law & Economics Research Paper No. 03-08. Available at SSRN: http://ssrn.com/abstract=384589 or http://dx.doi.org/10.2139/ssrn.384589

Contact Information

Vincy Fon
George Washington University - Department of Economics ( email )
2115 G Street, N.W.
Monroe Hall, #366
Washington, DC 20052
United States
202-994-7580 (Phone)
202-994-6147 (Fax)
Francesco Parisi (Contact Author)
University of Minnesota - Law School ( email )
229 19th Avenue South
Minneapolis, MN 55455
United States
University of Bologna ( email )
Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 2,061
Downloads: 351
Download Rank: 47,300
References:  12
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.375 seconds