| Authors |
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| Publication date |
2009
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| Series |
Tinbergen Institute Discussion Paper, TI 2009-030/1
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| Number of pages |
39
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| Publisher |
Amsterdam / Rotterdam: Tinbergen Instituut
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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| Abstract |
We consider repeated trust game experiments to study the interplay between explicit and relational incentives. After having gained experience with two payoff variations of the trust game, subjects in the final part explicitly choose which of these two variants to play. Theory predicts that subjects will choose the payoff dominated game (representing a bad explicit contract), because this game better sustains (implicit) relational incentives backed by either reputational or reciprocity considerations. We also explicitly test how game choice is affected by the length of the repeated game.
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| Document type |
Working paper
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| Language |
English
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| Published at |
http://www.tinbergen.nl/discussionpapers/09030.pdf
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