Reciprocity is a social principle where individuals respond to positive actions with similar positive actions. This concept is often seen in relationships, where one person's kindness or help encourages the other to return the favor. It fosters cooperation and builds trust among people, creating a sense of community.
In economics, reciprocity can influence trade and business relationships. For example, if a company provides a discount to a customer, the customer may feel inclined to make a purchase or recommend the business to others. This mutual exchange benefits both parties and can lead to long-term partnerships.