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A Representation Theorem for Guilt Aversion

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journal contribution
posted on 14.06.2016, 12:11 by Martin Kaae Jensen, Maria Kozlovskaya
Guilt aversion has been shown to play an important role in economic decision-making. In this paper, we take an axiomatic approach to guilt by deducing a utility representation from a list of easily interpretable assumptions on an agent's preferences. It turns out that our logarithmic representation can mitigate the problem of multiplicity of equilibria to which psychological games are prone. We apply the model in three well-known games and show that its predictions are consistent with experimental observations.

History

Citation

Journal of Economic Behavior and Organization, 2016, 125, pp. 148-161

Author affiliation

/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/Department of Economics

Version

AM (Accepted Manuscript)

Published in

Journal of Economic Behavior and Organization

Publisher

Elsevier

issn

0167-2681

Acceptance date

11/02/2016

Copyright date

2016

Available date

05/03/2019

Publisher version

http://www.sciencedirect.com/science/article/pii/S0167268116000238

Notes

The file associated with this record is under a 36-month embargo from publication in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.

Language

en

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