Recordkeeping Alters Economic History by Promoting Reciprocity

Authors

Sudipta Basu, Temple University
John Dickhaut, Chapman University
Gary Hecht, Emory University
Kristy Towry, Emory University
Gregory Waymire, Emory University

Document Type

Article

Publication Date

2009

Abstract

We experimentally demonstrate a causal link between recordkeeping and reciprocal exchange. Recordkeeping improves memory of past interactions in a complex exchange environment, which promotes reputation formation and decision coordination. Economies with recordkeeping exhibit a beneficially altered economic history where the risks of exchanging with strangers are substantially lessened. Our findings are consistent with prior assertions that complex and extensive reciprocity requires sophisticated memory to store information on past transactions. We offer insights on this research by scientifically demonstrating that reciprocity can be facilitated by information storage external to the brain. This is consistent with the archaeological record, which suggests that prehistoric transaction records and the invention of writing for recordkeeping were linked to increased complexity in human interaction.

Comments

This article was originally published in Proceedings of the National Academy of Sciences of the United States of America, volume 106, issue 4, in 2009. DOI: 10.1073/pnas.0811967106

Recommended Citation

Basu, S., Dickhaut, J., Hecht, G., Towry, K., and Waymire, G. "Recordkeeping Alters Economic History by Promoting Reciprocity." Proceedings of the National Academy of Sciences of the United States of America, 106 (4), pp. 1009-1014, January, 2009.
DOI:10.1073/pnas.0811967106

Peer Reviewed

1

Copyright

National Academy of Sciences