Generalized reciprocity emerges from frequent diverse interaction and boosts efficiency

Evidence

A society characterized by generalized reciprocity is more efficient than a distrustful society, for the same reason that money is more efficient than barter. If we don’t have to balance every exchange instantly, we can get a lot more accomplished. Trustworthiness lubricates social life. Frequent interaction among a diverse set of people tends to produce a norm of generalized reciprocity. … Dense social ties facilitate gossip and other valuable ways of cultivating reputation—an essential foundation for trust in a complex society. — Robert D. Putnam, Bowling Alone The Collapse and Revival…, 43

Categorization

  • DEFINE: Defines generalized reciprocity as the trust-norm where exchanges aren’t balanced instantly, contrasted with barter/money.
  • XREF: Directly builds on the reader’s Milgrom/Roberts law-merchant and trust literature — reputation via dense networks recurring theme. — connects to: Generalized reciprocity is more valuable than specific reciprocity — Robert D. Putnam, Bowling Alone The Collapse and Revival…, 42; Generalized reciprocity outranks tit-for-tat as a social glue — Robert D. Putnam, Bowling Alone The Collapse and Revival…, 41; Reciprocity motivations can be self-reinforcing where further interactions are plentiful (+4 more)

Broader Connections