Strength of the Reciprocity Motive (R)

Responder's Decision Rule with Reciprocal Preferences

Minimum Acceptable Offer with Reciprocal Preferences

In a scenario where two individuals must divide $100, a widely accepted social norm suggests a 50-50 split ($50 each). A model of behavior suggests that if one person (the Responder) receives an offer they feel is unfair, their satisfaction from rejecting that offer—and thus punishing the other person—is greater for offers that deviate more from the social norm. Based on this model, which of the following statements is the most accurate comparison of a Responder's potential satisfaction from rejecting different offers?

Analyzing a Responder's Choice

Explaining Rejection Satisfaction

In a model where a Responder's satisfaction from rejecting an offer is inversely proportional to how much the offer falls below a social norm, a Responder would derive a small, but positive, amount of satisfaction from rejecting an offer that is exactly equal to the social norm (e.g., a $50 offer in a $100 split).

A model of reciprocal behavior proposes that the satisfaction a person (a 'Responder') gets from rejecting an unfair monetary offer is inversely related to the size of the offer, relative to a social norm. Consider a situation where two people are to split $100, and the social norm is an equal $50-$50 split. Arrange the following offers the Responder could receive based on the amount of satisfaction they would get from rejecting each one. The offer yielding the highest rejection satisfaction should be first.

In a scenario where two individuals are tasked with splitting $100, the generally accepted social norm is a 50-50 split ($50 each). A behavioral economic model suggests that the satisfaction a Responder derives from rejecting an offer is inversely proportional to how much the offer is below the social norm. Match each offer made to the Responder with the corresponding level of satisfaction they would gain from rejecting it, based on this model.

Analyzing the Model of Reciprocity

In a behavioral model that accounts for a person's reaction to perceived unfairness, the satisfaction gained from rejecting a monetary offer that falls below a social norm is ______ related to the size of that offer.

Evaluating the Model of Reciprocal Motives

Comparing Reciprocal Reactions