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This working paper examines a principal-agent model incorporating altruism and reciprocity, demonstrating that while altruistic behavior can enhance efficiency compared to a selfish benchmark, the effects of increased altruism and reciprocity on efficiency are ambiguous. The study also explores the implications of spiteful behavior and how monetary transfers between players are influenced by their altruistic and spiteful tendencies. The findings suggest that altruistic players may trade more efficiently tha

Author

carolina

Language

EN