Abstract

A large body of experimental evidence documents the tendency for individuals to be positively reciprocal, rewarding kind actions by others, or be negatively reciprocal, punishing others for unkind actions, even when these reciprocal actions are costly or contrary to own material interest (see e.g. Fehr and Gachter, 2002 for an overview of literature). However, to the best of my knowledge there is very little evidence from large surveys how negative and positive reciprocity effects entrepreneurial behaviour (Caliendo, Fossen & Kritikos, 2011). Thus, I further investigate how reciprocal behaviour affects entrepreneurial activity, i.e. I use individual measures of reciprocal inclinations in a large, representative survey and relate reciprocity to the propensity as well as the probability to become an entrepreneur.

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