SFB 303 Discussion Paper No. B - 415

Author: Abbink, Klaus, Bernd Irlenbusch, and Elke Renner
Title: The Moonlighting Game - An Experimental Study on Reciprocity and Retribution
Abstract: We introduce the moonlighting game. Player A can take money from or pass money to player B, who can either return money or punish player A. One-shot experiments were performed on this game. Treatments were conducted with and without making non-binding agreements beforehand. The results refute the concept of rationality and support the impact of reciprocity and retribution, where retribution is more compelling than reciprocity. The equal division principle is the dominant fairness norm. Deviating norms are not a product of not knowing which norm to apply, but rather to avoid cognitive dissonance in advance.
Keywords: Reciprocity, retribution, fairness, non-binding contracts, cognitive dissonance
JEL-Classification-Number: C78, C91, D63, J41, K42
Creation-Date: October 1997
URL: ../1997/b/bonnsfb415.pdf

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