On The Role of Sacrifice in Reciprocity

24 Pages Posted: 11 May 2022

See all articles by Simin He

Simin He

Shanghai University of Finance and Economics - School of Economics

Jiabin Wu

University of Oregon - Department of Economics

Date Written: May 10, 2022

Abstract

This paper experimentally investigates the importance of sacrifice in affecting people’s reciprocal behavior. Our design allows us to exactly pin down how sacrifice of the sender’s own payoff matters for her perceived kindness from the eyes of the receiver in a sender-receiver game, without being confounded by fairness concerns and higher order beliefs. We show that a simple extension of the axiomatic model of reciprocity by Cox et al. (2008) can nicely incorporate sacrifice, which matches the new empirical regularities found in our experiment.

Keywords: Sacrifice, Reciprocity, Intention, Kindness, Social Preferences, Experimental Economics

JEL Classification: C92, D91

Suggested Citation

He, Simin and Wu, Jiabin, On The Role of Sacrifice in Reciprocity (May 10, 2022). Available at SSRN: https://ssrn.com/abstract=4106126 or http://dx.doi.org/10.2139/ssrn.4106126

Simin He

Shanghai University of Finance and Economics - School of Economics ( email )

777 Guoding Road
Shanghai, 200433
China

Jiabin Wu (Contact Author)

University of Oregon - Department of Economics ( email )

Eugene, OR 97403
United States

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