Reciprocity in social and economic systems

Ho! 'Tis the season of reciprocity. According to cultural anthropologists, reciprocity refers to the exchange of goods and services between partners that involves both giving and receiving between the same persons. People transfer these products in three different ways: generalized, or when the terms and conditions are unspecified; balanced, or when each party benefits but not at the expense of the other; and negative, where one is trying to assume maximum benefit of the exchange. Unfortunately, it appears that the season of "good will toward men" is increasingly becoming more negative than ever. In the earliest of times, most people gave small gifts as a kind gesture or in generalized manner. Then, with increased commercialism, the gift-giving became, "If he/she gives me this, I will have to respond equally and give him/her that," or in the balanced realm of reciprocity. Recently, it seems, however, that people have gone a step further. "If he/she has given me this, I have to go above and beyond and give her/him that." This higher exchange is not for the benefit of the person who receives the gift, but rather a means to get one up on the other...a negative state of affairs at this time of the year.

The underlying mechanism of social exchange between individuals is recognized by anthropologists as the concept of reciprocity. This is when one person gives another person a resource, and establishes a structure for the receiving individual to reciprocate with a resource of equal value at some future point in time. According to Gouldner (1960), the norm of reciprocity is universal, or it directs exchange relationships in all spheres of life and in all cultures.

Sparrowe and Liden (1997) explain the idea of reciprocity in terms of the degree and nature of the interest of each individual involved in the exchange, the immediacy of expected returns and the equivalence of returns. Interest is defined as "the nature of the exchange partners' involvement in the exchange process and ranges from unbridled self-interest, through mutual interest, to interest in and concern for the other" (p. 524). Immediacy of returns reflects the timing between the giving of a resource and the receipt of a resource in return. Low immediacy notes reciprocity somewhere in the future, even an indefinite period, and high immediacy refers to nearly instant reciprocation. Equivalence of expected returns conveys the value attached to the resources exchanged.

Generalized reciprocity, or the type of reciprocity characterized by giving without the expectation of return, is often seen in non-industrialized societies. For example, it is the primary form of distribution found in foraging communities. In this form of distribution, all goods are basically shared. People give without the expectation of return, and in the end, everything balances out. This reciprocity is very important for a hunting and gathering society where each individual is not sure of finding food every day. However, the chances are quite high that someone has found food. The bottom line: with generalized reciprocity, if one individual eats, everyone eats.

In balanced reciprocity, there is an expectation of return. The Trobriand Islanders have a society that lives on a group of islands in the Pacific near New Zealand. They share a tradition called the Kula ring, which is a noncompetitive, ceremonial exchange that assists in developing and reinforcing agreements and trading relationships. In the Kula ring, individuals trade Bagi, or red shelled necklaces in a clockwise direction, while exchanging mwali, white shell arm bands in a counter-clockwise fashion. This is an example of balanced reciprocity: If a person gets a mwali from someone, he/she is expected to give a bagi in return and vice versa.

In today's Western society, this can be likened to the traditional form of gift- giving: Presents are given to individuals known, such as friends or family members. When people give a gift, they often expect something in return. This does not have to occur immediately, but at some point in time. For instance, if a person gives a friend a birthday gift, most likely he/she will also receive a birthday present in the future.

Negative reciprocity takes place when there is an attempt to get someone to exchange something he/she may not want to give up or when there someone tries to gain a more valued thing than given in return. For instance, a woman may be offered a new job in another town beginning in a week. She badly needs to sell her car before moving to make some money and because it will not be needed in the next position. The automobile is nearly new and it originally cost $22,000. Her neighbor offers her $10,000, which she grudgingly accepts because there is no other choice. The neighbor is taking advantage of her situation and showing an example of negative reciprocity. he/she has gotten the upper hand and gained something in the exchange. In many situations, negative reciprocity if a form of power or control. It obligates one person to another.

Over the past several decades, two major trends have occurred in gift-giving. The first is the rapid commercialization of the events during the year. The second is that the social networks have changed from family to friends to business associates and employers.

The majority of the holidays celebrated today did not exist more than 150 years ago, yet presently most people feel obligated by these events and it is necessary to share gift-giving with family and friends. Recently, this has extended to other people, as well, who are known but not closely attached. As a result, major companies have increasingly addressed this need, which has further placed an importance on the events and gift-giving. Further, people used to believe that it was the thought, not the gift, that counted. In fact, cards were exchanged instead of gifts at the holidays.

The approaching holiday season will bring out the best, and worst, in many people. In a positive reciprocity respect, gifts will be given to friends and families in a generalized manner. Individuals will offer presents with no expectations that something of similar value or even anything at all will be given in return. The present will be given as an act of kindness. Similarly, many gifts will be given in a balanced way. That is, family members will exchange gifts of equal value without any concern of competition or obligation of cost. All parties will be pleased that they received a gift (even if it was something they never wanted!)

However, there is a form of negative gift-giving that seems to be growing along with commercialization of the holidays. That is feeling that one is obligated to give something bigger than something received by someone else. When people know that a person is going to give them a gift, they feel constrained to provide something in return -- and, in many cases, something more costly or rare. The following year, the gifts exchanged will have to be even better.