DK Model

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DK Model is a reciprocity model which was proposed by Dufwenberg and Kirchsteiger (2004)^[1]; therefore, we call it "DK" model for short. A reciprocity model is an economic model which tries to explain how reciprocity occurs in human interactions. Reciprocity can be either positive (e.g. gift giving, returning rewards) or negative (e.g. retaliation). Besides the DK model, altruistic model, inequity aversion model, guilt aversion model are some examples of the reciprocity model.

References

1. ↑ Dufwenberg, M., & Kirchsteiger, G. (2004). A theory of sequential reciprocity. Games and Economic Behavior, 268-298.