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"A negative norm of reciprocity represents the means by which individuals act against unfavourable treatments, and functions to keep balance in social systems". [6] In contrast to the positive reciprocity norm, the negative reciprocity norm emphasizes the return of unfavourable treatment as an appropriate response to a misdeed.
Annette Weiner argued that the "norm of reciprocity" is deeply implicated in the development of Western economic theory.Both John Locke and Adam Smith used the idea of reciprocity to justify a free market without state intervention.
The social norm of reciprocity is the expectation that people will respond to each other in similar ways—responding to gifts and kindnesses from others with similar benevolence of their own, and responding to harmful, hurtful acts from others with either indifference or some form of retaliation.
The majority of literature would support that “nature” influences social preferences more strongly whereas there is still research to support the heavy influence of sociocultural factors. Some of these factors include social distance between economic agents, the distribution of economic resources, social norms, religion and ethnicity. [4]
The gift exchange game serves as a valuable lens through which to understand economic theory as it demonstrates that self-interest maximization is not the sole determinant of economic decision-making. Rather, reciprocity is a fundamental factor that shapes individuals' behaviour in economic contexts.
Reciprocity as a transactional pattern of interdependent exchanges; Reciprocity as a folk belief; Reciprocity as a moral norm; A generalized exchange involves indirect reciprocity between three or more individuals. [47] For example, one person gives to another and the recipient responds by giving to another person other than the first person.
Homo reciprocans, or reciprocating human, is the concept in some economic theories of humans as cooperative actors who are motivated by improving their environment through positive reciprocity (rewarding other individuals) or negative reciprocity (punishing other individuals), even in situations without foreseeable benefit for themselves.
Reciprocity is not only a strong determining factor of human behavior; it is a powerful method for gaining one's compliance with a request. The rule of reciprocity has the power to trigger feelings of indebtedness even when faced with an uninvited favor [16] irrespective of liking the person who executed the favor. [17]