Reciprocity in Smith

Overview & Synopsis

This paper aims at providing a reconstruction of a general theory of reciprocity from Smith's works which provides both a descriptive and a normative account of reciprocity, and explains reciprocal behavior in bilateral relationships as well as the origin and evolution of social rules of reciprocity. I will show that this "Smithian" theory of reciprocity can explain several experimental results, generate previsions for new experiments and offer an interesting alternative to existing models of reciprocity and social preferences in economics. Smith offers a non-utilitarian, emotion-based and moral theory of reciprocity. We conclude in underlining how the idea of reciprocity is at the heart of Smith's theory of morality and of his moral egalitarianism.