Piqueteros: An Experimental Analysis of Direct vs. Indirect Reciprocity

Abstract

Research in behavioral economics has recognized the importance of reciprocity in individual behavior. The debate is dominated by a focus on direct reciprocity. Motivated in a real-life situation in Argentina - the piqueteros (pickets) conflict - I use a three-player three-stage game in order to investigate what type of reciprocity prevails in an environment that allows for both direct and indirect reciprocity at he same time. Results suggest that (negative) reciprocity from the directly affected individuals is more frequent than punishment from the third party. However, under our experimental design, when the third party has the choice between direct or indirect reciprocity, the latter prevails.

Keywords: Direct Reciprocity, Indirect Reciprocity, Social Conflict, Punishment

JEL Classification: C92