I know nothing of economics, but I liked the example of bussers and servers. What I am wondering is the distinction between fairness, and reciprocity (is one perception and the other action or response)? Also, something I often wondered is, can it ever lead to positive feedback loops, with negative consequences (being too nice, and reciprocation of niceness that becomes too extreme or unworkable)?
In terms of fairness vs. reciprocity, in this model the difference is technical. Fairness is about the other person's treatment of you, independent of your behavior toward them. Reciprocity is about the interaction of their treatment toward you with your treatment toward them. In terms of feedback loops, you can absolutely build on this to get other problems. For example, being too nice can set an expectation for future interactions, which shows up then as an exogenous variable. The setting of that expectation can lead to disappointment in the future, even with nice behavior. Because of this, expectations about repeated interactions with the same person make a huge difference for optimal behavior.
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Thank you for your helpful video!
I know nothing of economics, but I liked the example of bussers and servers.
What I am wondering is the distinction between fairness, and reciprocity (is one perception and the other action or response)?
Also, something I often wondered is, can it ever lead to positive feedback loops, with negative consequences (being too nice, and reciprocation of niceness that becomes too extreme or unworkable)?
In terms of fairness vs. reciprocity, in this model the difference is technical. Fairness is about the other person's treatment of you, independent of your behavior toward them. Reciprocity is about the interaction of their treatment toward you with your treatment toward them.
In terms of feedback loops, you can absolutely build on this to get other problems. For example, being too nice can set an expectation for future interactions, which shows up then as an exogenous variable. The setting of that expectation can lead to disappointment in the future, even with nice behavior. Because of this, expectations about repeated interactions with the same person make a huge difference for optimal behavior.
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