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Immaterial and monetary gifts in economic transactions: evidence from the field

Published online by Cambridge University Press:  14 March 2025

Michael Kirchler*
Affiliation:
Department of Banking and Finance, University of Innsbruck, Universitätsstrasse 15, 6020 Innsbruck, Austria Department of Economics, Centre for Finance, University of Gothenburg, Vasagatan 1, 40530 Gothenburg, Sweden
Stefan Palan*
Affiliation:
Department of Banking and Finance, University of Innsbruck, Universitätsstrasse 15, 6020 Innsbruck, Austria Department of Banking and Finance, University of Graz, Universitätsstrasse 15, 8010 Graz, Austria
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Abstract

Reciprocation of monetary gifts is well-understood in economics. In contrast, there is little research on reciprocal behavior following immaterial gifts like compliments. We narrow this gap and investigate how employees reciprocate after receiving immaterial gifts and material gifts over time. We purchase (1) ice cream from fast food restaurants, and (2) durum doner, a common lunch snack, from independent vendors. Prior to the food’s preparation, we either compliment or tip the salesperson. We find that salespersons reciprocate compliments with higher product weight than in a control treatment. Importantly, this reciprocal behavior following immaterial gifts grows over repeated transactions. Tips, in contrast, have a stronger level effect which does not change over time.

Information

Type
Original Paper
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution (CC-BY) license (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted re-use, distribution, and reproduction in any medium, provided the original work is properly cited.
Copyright
Copyright © The Author(s) 2017
Figure 0

Fig. 1 Sample photo of two ice cream cones

Figure 1

Table 1 Descriptive statistics: mean, median, standard deviation, minimum, and maximum of raw ice cream cone weights across treatments in grams (top panel) and in grams per euro spent (bottom panel)

Figure 2

Fig. 2 Mean ice cream weight in grams (left panel) and in grams per euro (right panel) across treatments NORMAL, COMPLIMENT and TIP

Figure 3

Table 2 Panel regressions of ice cream cone weight in grams (models 1, 2) and cone weight in grams per euro spent (models 1M, 2M) across treatments

Figure 4

Fig. 3 Sample photos of a durum doner: wrapped in foil (left), wrapped without foil (middle) and unwrapped (right)

Figure 5

Table 3 Number of observations for each visit and treatment in experiment DONER

Figure 6

Table 4 Descriptive statistics: mean, median, standard deviation, minimum, and maximum of raw doner weights across treatments and over time in grams (top panel) and in grams per euro spent (bottom panel)

Figure 7

Fig. 4 Doner weight in grams (left panel) and doner weight in grams per euro spent (right panel) as a function of time (visit number) across treatments NORMAL, COMPLIMENT and TIP

Figure 8

Table 5 Panel regressions of doner weight in grams (models 3, 4) and doner weight in grams per euro spent (models 3M, 4M) across treatments and over time

Figure 9

Table 6 Random effects panel regressions of doner weight in grams (models 3O, 4O) and doner weight in grams per euro spent (models 3MO, 4MO) across treatments and over time and including owner interactions

Figure 10

Fig. 5 Normalized ice cream weight in grams (left panel) and in grams per euro (right panel) across treatments COMPLIMENT and TIP. Because of the normalization procedure mean weight of treatment NORMAL is set to 100

Figure 11

Table 7 OLS regressions of normalized ice cream cone weight (models 1N, 2N) and of normalized weight per euro spent (models 1MN, 2MN) across treatments

Figure 12

Fig. 6 Normalized doner weight (left panel) and normalized doner weight per euro spent (right panel) as a function of time (visit number) across treatments NORMAL, COMPLIMENT and TIP

Figure 13

Table 8 OLS regressions of normalized doner weight in grams (models 3N, 4N) and in grams per euro spent (models 3MN, 4MN) across treatments and over time

Figure 14

Table 9 Pairwise treatment differences in raw doner weight and in normalized doner weight (denoted by “N” in the first column and shown in the lower panel) and in raw and normalized weight per euro