Fehr, E., &Gächter, S. (1998). Reciprocity and economics: The economic implications of Homo Reciprocans1.European economic review, 42(3-5), 845-859.

A large number of studies suggest that reciprocity constitutes a basic motivational drive. This paper shows that reciprocity can account for a wide range of empirical phenomena: It (1) is a powerful effort elicitation device, (2) explains why employers refuse to hire underbidders and, hence, why wages are downwardly rigid, (3) gives rise to non-compensating wage differentials and to a positive correlation between profits and wages, (4) provides a rationale for the absence of explicit financial incentives, and (5) is a key force that sustains social norms.

 

 

Fehr, E., &Gächter, S. (1998). Reciprocity and economics: The economic implications of Homo Reciprocans1.European economic review, 42(3-5), 845-859.

https://doi.org/10.1016/S0014-2921(97)00131-1