Simple and complex gift exchange in the laboratory

This paper examines an experimental gift exchange game in which the players can improve on the unique no-gifts equilibrium by two different types of gift exchange: simple and complex exchange, respectively. Complex exchange gives higher payoffs than simple exchange, but it requires not only mutual trust, like with simple exchange, but also a substantial degree of coordination. The paper examines whether players are able to conclude simple and complex exchanges and how this is affected by the move and matching structure of the game. It was found that the so-called partners treatment is a precondition for the occurrence of complex exchange.