We investigate how the transparency of selecting an agent affects the agent’s reciprocal behavior. In a modified gift-exchange game, agents either receive information about having (not) been selected or receive no such information at all, which allows to analyze reciprocity of agents who were...

This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how “direct” performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over...

This paper analyzes a dynamic relational contract for employees with reciprocal preferences. I develop a tractable model to investigate how "direct" performance-pay (promising a bonus in exchange for effort) and generous upfront wages (which activate the norm of reciprocity) interact over the...