2020
DOI: 10.1016/j.jebo.2019.12.006
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Expectations of reciprocity when competitors share information: Experimental evidence

Abstract: Informal exchange of information among competitors has been well-documented in a variety of industries, and one's expectation of reciprocity shown to be a key determinant. We use an indeterminate horizon centipede game to establish a feedback loop in the laboratory and show that an individual's beliefs about the recipient's intentions to reciprocate matter more than a recipient's ability to do so. This implies that reducing strategic uncertainty about a competitor's behavior has a stronger effect on informatio… Show more

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Cited by 6 publications
(4 citation statements)
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“…Today, information about competitors is regarded as a critical benefit for organizations and can improve innovation management (Sutinen and Vanhalakka-Ruoho, 2014). Also, informal knowledge about trading and exchanging the information among competitors has been recorded for the diversity of businesses (Ganglmair et al , 2018). Knowing competitor’s information has a vital role in the success of business and organization.…”
Section: Introductionmentioning
confidence: 99%
“…Today, information about competitors is regarded as a critical benefit for organizations and can improve innovation management (Sutinen and Vanhalakka-Ruoho, 2014). Also, informal knowledge about trading and exchanging the information among competitors has been recorded for the diversity of businesses (Ganglmair et al , 2018). Knowing competitor’s information has a vital role in the success of business and organization.…”
Section: Introductionmentioning
confidence: 99%
“…To quote from Rabin (1993): “People are willing to sacrifice their own material well‐being to help those who are being kind and to punish those who are being unkind.” This reciprocal behavior is confirmed by substantial experimental literature (e.g., Berg et al, 1995; Chlass et al, 2019; Deng et al, 2021; Fehr & Gachter, 2000a, 2000b). The empirical evidence is also reported in the automotive, computer, and construction industries (Ganglmair et al, 2020; Lau et al, 2010; Morgan & Daniel, 2001). For example, in the automobile industry, the manufacturer often invests directly or exerts some effort to improve the supplier's production reliability and efficiency by providing engineering resources, information technology, or special training (Paulraj et al, 2008; Zhang et al, 2009).…”
Section: Introductionmentioning
confidence: 73%
“…In Ganglmair, et al; agents are willing to share information if they expect their opponents to reciprocate. Therefore, reciprocity and information create a "feedback loop" that affects the efficiency of the strategic interaction.…”
Section: Introductionmentioning
confidence: 99%