Theory Of Reciprocity Relationship

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Reciprocity is a core part of building trustful relationships (Weber and Carter 1992) and reputations in a society (Lyon 2000) and a customary drift in economic and social domains (Neo et al. 2013). Although trust and reciprocity are intertwined (Song 2008) but unlike trust, reciprocity has received relatively less attention in the past (Song 2009). But more recently it has been examined both theoretically and empirically as a separate construct, yet closely linked to trust (Brandt and Sola 2001; Pillutla et al. 2003; Malhotra 2004; Falk and Fischbacher 2006). In actuality, although trust and reciprocity behavior are defined to present together, but are not reported with a same level/intensity (Chaudhuri et al. 2004). Since it does not come…show more content…
Thus, reciprocity interlocks the status duties which people owe one another (Malinowski 1932), leading to actions to be kind in kind manner, and to actions perceived to be hostile in hostile manner (Rabin 1993; Dufwenberg and Kirchsteiger 2004; Segal and Sobel 2004; Falk and Fischbacher 2005). Basically the type of behaviour depends on the type of benefactor- either there are chances for an individual to behave kindly towards a spiteful person and hostilely towards an altruistic person (Levine 1998), or can connote making cooperative choices who acted cooperatively and making competitive choices towards an opponent who acted competitively (Beggan and Allison 2012). All these choices show varied two-way transfers in between gift and exchange in elementary form, but having a steady relationship (Kolm 1994). These variations expressed derive many types’ of reciprocities modelled using conventional game theory (Ahmed 2011). They are; 1) ‘Conditional reciprocity’ being the most prominent approach for evolution of cooperation (Smith 2010) and its defining feature is that- the individual cooperates if other participants to do the same, otherwise it withholds cooperation; 2) ‘Positive reciprocity’ is a motivation to repay generous or helpful actions…show more content…
Going a step further, giving emphasis on assessment of social exchanges and distributive justice giving on equality and inequality of the benefits given and received (Molm et al. 2007b); it is remarked that social cohesion and equilibrium could not exist without the reciprocity of service, and is important for all forms of societies (Simmel 1950 p.387). This supports the illustration given well before by Thurnwald (1916; 1932) on the central importance of reciprocity as a basis for entire social and ethical life of every relationship, which pervades and presumably rests in a primitive society. Congruently, several of the later scholarly studies (Fehr and Gachter 1998; Hoffman et al. 1998; Fehr and Gachter 2000; Brandts and Charness 2003) present a strong argument that reciprocal behaviour has powerful implications on many of the economic domains. The above portrays of literature enunciate norms of reciprocity as a universal functions; However reported to behave differently in different cultures (Westermarck 1908) with variation in its concrete formulations from time and place (Gouldner 1960), there by keeps social capital sense in “civic virtue” embedded in a network of reciprocal relations (Putnum 2000, p.20). In spite of its above

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