This paper departs from the standard profit-maximizing model of firm behavior by assuming that firms are motivated in part by personal animosity–or respect–towards their competitors. A reciprocal firm responds to unkind behavior of rivals with unkind actions (negative reciprocity), while at...

This paper investigates the importance of concerns about intentions and outcomes in a sequential prisoner’s dilemma game with nature. In the game, there is a chance that the first mover’s choice is reversed. This allows the separation of intended actions from the resulting outcomes....

Trust and reciprocity have paramount importance in cooperative relationships. The influence of psychological effects such as framing and anchoring on trust and reciprocity has been investigated; however, the impact of an order effect on them is still unexplored. The goal of our study was to...

Indirect reciprocity is one of the major mechanisms driving the evolution of cooperation in human societies. There are two types of indirect reciprocity: upstream and downstream reciprocity. Cooperation in downstream reciprocity follows the pattern ‘You helped someone, and I will help you’,...

Explaining human cooperation in large groups of non-kin is a major challenge to both rational choice theory and the theory of evolution. Recent research suggests that group cooperation can be explained by positing that cooperators can punish non-cooperators or cheaters. The experimental evidence...

Social preference models emphasize that perceived intentions motivate reciprocity. However, laboratory tests of this theory typically manipulate perceived intentions through changes in wealth resulting from a sacrifice in pay by another. There is little evidence on whether reciprocity occurs in...

Network reciprocity has been successfully put forward (since M. A. Nowak and R. May's, 1992, influential paper) as the simplest mechanism-requiring no strategical complexity-supporting the evolution of cooperation in biological and socioeconomic systems. The mechanism is actually the network,...

Despite the accumulation of research on indirect reciprocity over the past 30 years and the publication of over 100,000 related papers, there are still many issues to be addressed. Here, we look back on the research that has been done on indirect reciprocity and identify the issues that have...