Economic transactions among friends: Asymmetric generosity but not agreement in buyers' and sellers' offers

Journal of Conflict Resolution

Volumn 50, Issue 4, 2006, Pages 584-606

  Mandel, David R ^a  

^a DEFENCE RESEARCH AND DEVELOPMENT CANADA   (Canada)

Author keywords

Economic transactions; Endowment effect; Fairness; Friendship; Generosity; Norms

Indexed keywords

EID: 33745792364     PISSN: 00220027     EISSN: 15528766     Source Type: Journal    
DOI: 10.1177/0022002706290432     Document Type: Article

References (51)

1. Aarts, H., and A. Dijksterhuis. 2003. The silence of the library: Environment, situational norm, and social behavior. Journal of Personality and Social Psychology 84: 18-28.
2. Austin, W. 1980. Friendship and fairness: Effects of type of relationship and task performance on choice of distribution rules. Personality and Social Psychology Bulletin 6: 402-408.
3. Axelrod, R. 1984. The evolution of cooperation. New York: Basic Books.
4. Boulding, K. E. 1973. The economy of love and fear. Belmont, CA: Wadsworth.
5. Camerer, C. 1988. Gifts as economic signals and social symbols. American Journal of Sociology 94: 180-214.
6. Campbell, W. K., C. Sedikides, G. D. Reeder, and A. J. Elliot. 2000. Among friends? An examination of friendship and the self-serving bias. British Journal of Social Psychology 39: 229-239.
7. Carmon, Z., and D. Ariely. 2000. Focusing on the forgone: How value can appear so different to buyers and sellers. Journal of Consumer Research 27: 360-370.
8. Casey, J. 1995. Buyer-seller pricing disparities. Management Science 41: 979-999.
9. Chan, A. S., H. Chiu, L. Lam, A. Pang, and L. Y. Chow. 1999. A breakdown of event schemas in patients with schizophrenia: An examination of their script for dining at restaurants. Psychiatry Research 87: 169-181.
10. Chapman, G. B. 1998. Similarity and reluctance to trade. Journal of Behavioral Decision Making 11: 47-58.
11. Clark, M. S. 1981. Noncomparability of benefits given and received: A cue to the existence of friendship. Social Psychology Quarterly 41: 375-381.
12. Deutsch, M. 1975. Equity, equality, and need: What determines which value will be used as the basis of distributive justice? Journal of Social Issues 31: 137-149.
13. Fischer, C. S. 1982. What do we mean by "friend"? A deductive study. Social Network 3: 287-306.
14. Fiske, A. P. 1992. The four elementary forms of sociality: Framework for a unified theory of social relations. Psychological Review 99: 689-723.
15. Fiske, S. T., and S. E. Taylor. 1991. Social cognition. New York: Random House.
16. Foa, U. G., and E. B. Foa. 1974. Societal structures of the mind. Springfield, IL: Charles C Thomas.
17. Fry, W. R., I. Firestone, and D. Williams. 1983. Negotiation power and outcome of stranger dyads and dating couples: Do lovers lose? Basic and Applied Social Psychology 4: 1-16.
18. Funnell, E. 2001. Evidence for scripts in semantic dementia: Implications for theories of semantic memory. Cognitive Neuroscience 18: 323-341.
19. Gouldner, A. W. 1960. The norm of reciprocity: A preliminary statement. American Sociological Review 25: 161-178.
20. Greenhalgh, L., and D. I. Chapman. 1996. Relationships between disputants: An analysis of their characteristics. East Lansing: Michigan State University Press.
21. Halpern, J. J. 1994. The effect of friendship on personal business transactions. Journal of Conflict Resolution 38: 647-664.
22. Halpern, J. J. 1996. The effect of friendship on decisions: Field studies of real estate transactions. Human Relations 49: 1519-1547.
23. Halpern, J. J. 1997. Elements of a script for friendship in transactions. Journal of Conflict Resolution 41: 835-868.
24. Kahneman, D., J. L. Knetsch, and R. Thaler. 1990. Experimental tests of the endowment effect and the Coase theorem. Journal of Political Economy 98: 728-741.
25. Kahneman, D., and A. Tversky. 1979. Prospect theory: An analysis of decision under risk. Econometrica 47: 263-291.
26. Kelley, H. H. 1979. Personal relationships: Their structures and processes. Hillsdale, NJ: Lawrence Erlbaum.
27. Kenny, D. A., and D. A. Kashy. 1994. Enhanced co-orientation in the perception of friends: A social relations analysis. Journal of Personality and Social Psychology 67: 1024-1033.
28. Kenny, D. A., D. A. Kashy, and N. Bolger. 1998. Data analysis in social psychology. In The handbook of social psychology, vol. 1, 4th ed., edited by D. Gilbert, S. Fiske, and G. Lindzey, 233-265. Boston: McGraw-Hill.
29. Mandel, D. R. 2002. Beyond mere ownership: Transaction demand as a moderator of the endowment effect. Organizational Behavior and Human Decision Processes 88: 737-747.
30. Messick, D. M., and K. P. Sentis. 1983. Fairness, preference, and fairness biases. In Equity theory, edited by D. M. Messick and D. M. Cook, 61-94. New York: Praeger.
31. Miller, D. T. 1999. The norm of self-interest. American Psychologist 54: 1-8.
32. Mills, J., and M. S. Clark. 1982. Communal and exchange relationships. In Review of personality and social psychology, edited by L. Wheeler, 121-144. Beverly Hills, CA: Sage.
33. Morgan, W. R., and J. Sawyer. 1967. Bargaining, expectations, and the preference for equality over equity. Journal of Personality and Social Psychology 6: 139-149.
34. Parks, J. M., T. L. Boles, D. E. Conlon, E. DeSouza, W. Gatewood, K. Gibson, J. J. Halpern, D. C. Locke, J. C. Nekich, P. Straub, G. Wilson, and J. K. Murnighan. 1996. Distributing adventitious outcomes: Social norms, egocentric martyrs, and the effects on future relationships. Organizational Behavior and Human Decision Processes 67: 181-200.
35. Pinkley, R. 1990. Dimensions of conflict frame: Disputant interpretations of conflict. Journal of Applied Psychology 75: 117-126.
36. Robben, H. S. J., and T. M. M. Verhallen. 1994. Behavioral costs as determinants of cost perception and preference formation for gifts to receive and gifts to give. Journal of Economic Psychology 15: 333-350.
37. Roberts, G., and T. N. Sherratt. 1998. Development of cooperative relationships through increasing investment. Nature 394: 175-179.
38. Rubin, D. C., and D. Berntsen. 2003. Life scripts help to maintain autobiographical memories of highly positive, but not highly negative, events. Memory & Cognition 31: 1-14.
39. Sahlins, M. 1972. Stone age economics. Chicago: Aldine-Atherton.
40. Schank, R. C., and R. P. Abelson. 1977. Scripts, plans, and understanding. Hillsdale, NJ: Lawrence Erlbaum.
41. Shapiro, E. G. 1975. Effect of expectations of future interactions on reward allocations in dyads: Equality or equity? Journal of Personality and Social Psychology 31: 873-880.
42. Taylor, S. E., and J. H. Koivumaki. 1976. The perception of self and others: Acquaintanceship, affect, and actor-observer differences. Journal of Personality and Social Psychology 33: 403-408.
43. Teigen, K. H., M. V. G. Olsen, and O. E. Solas. 2005. Giver-receiver asymmetries in gift preferences. British Journal of Social Psychology 44: 125-144.
44. Thaler, R. H. 1980. Toward a positive theory of consumer choice. Journal of Economic Behavior and Organization 1: 39-60.
45. Thompson, L., and T. DeHarpport. 1998. Relationships, goal incompatibility, and communal orientation in negotiations. Basic and Applied Social Psychology 20: 33-44.
46. Thompson, L., and G. Loewenstein. 1992. Egocentric interpretations of fairness and interpersonal conflict. Organizational Behavior and Human Decision Processes 51: 176-197.
47. Van Boven, L., D. Dunning, and G. Loewenstein, G. 2000. Egocentric empathy gaps between owners and buyers: Misperceptions of the endowment effect. Journal of Personality and Social Psychology 79: 66-76.
48. van Dijk, E., and D. van Knippenberg. 1996. Buying and selling exchange goods: Loss aversion and the endowment effect. Journal of Economic Psychology 17: 517-524.
49. van Dijk, E. 1998. Trading wine: On the endowment effect, loss aversion, and the comparability of consumer goods. Journal of Economic Psychology 19: 485-495.
50. Van Lange, P. A. M., J. W. Ouwerkerk, and M. J. A. Tazelaar. 2002. How to overcome the detrimental effects of noise in social interaction: The benefits of generosity. Journal of Personality and Social Psychology 85: 768-780.
51. Waldfogel, J. 2002. Gifts, cash, and stigma. Economic Inquiry 40: 415-427.