Field evidence suggests that people belonging to the same group often behave similarly, i.e., behavior exhibits social interaction effects. We conduct a laboratory experiment that avoids the identification problem present in the field and allows us to study the behavioral logic of social...

Field evidence suggests that people belonging to the same group often behave similarly, i.e.,behaviour exhibits social interaction effects. We conduct an experiment that avoids theidentification problem present in the field. Our novel design feature is that each subjectsimultaneously is a member...

Field evidence suggests that people belonging to the same group often behave similarly, i.e., behaviour exhibits social interaction effects. We conduct an experiment that avoids the identification problem present in the field. Our novel design feature is that each subject simultaneously is a...

This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also by the intention underlying this action. The theory...

Two types of theoretic approaches have been developed to model fair behavior. According to the "equity approach" fairness is solely driven by distributional concerns. Opposed to this consequentialistic perspective, the "reciprocity approach" stresses the importance of intentions. We discuss...

Field evidence suggests that agents belonging to the same group tend to behave similarly, i.e., behavior exhibits social interaction effects. Testing for such effects raises severe identification problems. We conduct an experiment that avoids these problems. The main design feature is that each...