Direct versus Indirect Reciprocity: An Experiment

In this paper we report experimental results that relate to the recprocity experiment of Berg, Dickhaut, and McCabe (1995). We consider direct reciprocity, which means to respond in kind to another person, and indirect reciprocity, understoode as rewarding someone else. Another variation conerns the information about the multiplier of donations where we compare the benchmark case with a commonly known multiplier to a condition where the multiplier is known with cerntainty only to donors. Questions which we try to answer are: Will indirect reciprocity induce higher or lower donations?, will donors with the high multiplier "hide behind the small one?", how do receivers respond to different situations?