Average Wage, Reputation and Reciprocity

  • Kean Siang Ch'ng Universiti Sains Malaysia
  • Yiing Jia Loke Universiti Sains Malaysia

Abstract

Four experiments with different treatments were conducted to investigate reciprocal behaviour and the role of average wage information in a gift exchange game. No significant differences were found between the stranger and partner treatments but when workers have information on the average wage in the partner treatments, significant differences between stranger and partner treatments emerge. This suggests that average wage information reinforces positive reciprocity as intentions of the employer becomes clearer and easier to interpret. Furthermore, the information on average wage gives workers who are concerned with wage-effort equality the incentive to reciprocate effort relative to average wage.

Author Biographies

Kean Siang Ch'ng, Universiti Sains Malaysia

School of Social Sciences, Universiti Sains Malaysia

Yiing Jia Loke, Universiti Sains Malaysia

School of Social Sciences, Universiti Sains Malaysia

Published
2017-06-02
How to Cite
CH'NG, Kean Siang; LOKE, Yiing Jia. Average Wage, Reputation and Reciprocity. Malaysian Journal of Economic Studies, [S.l.], v. 48, n. 1, p. 23-36, june 2017. ISSN 1511-4554. Available at: <https://mjes.um.edu.my/article/view/2841>. Date accessed: 23 sep. 2017.
Section
Articles