This paper presents a model that can account for, and explain, two well documented empirical asymmetries characterising a worker's reciprocity: negative reciprocity is both stronger, and more persistent, than positive reciprocity. The stronger intensity of negative reciprocity is driven by the worker being loss averse; the longer persistence is driven by the slower adaptation of the worker to wage changes that are perceived as unfair.
|Place of Publication||Glasgow|
|Publisher||University of Strathclyde|
|Number of pages||9|
|Publication status||Published - 31 May 2018|
- loss aversion