Immaterial and monetary gifts in economic transactions: evidence from the field

• DOI: 10.1007/s10683-017-9536-1
• Publication Date: 2017-08-02T03:15:35Z
• Authors: Michael Kirchler; Stefan Palan
• Keywords: Reciprocal

Reciprocation of monetary gifts is well-understood in economics. In contrast, there little research on reciprocal behavior following immaterial like compliments. We narrow this gap and investigate how employees reciprocate after receiving material over time. purchase (1) ice cream from fast food restaurants, (2) durum doner, a common lunch snack, independent vendors. Prior to the food's preparation, we either compliment or tip salesperson. find that salespersons compliments with higher product weight than control treatment. Importantly, grows repeated transactions. Tips, have stronger level effect which does not change