Search results for "Inequity aversion"
showing 4 items of 4 documents
The effects of personality, risk and other-regarding attitudes on trust and reciprocity
2022
Abstract This paper reports experimental results on the determinants of trust and reciprocity in the context of a genuinely sequential, binary Trust Game. Apart from behavior in the main experiment, subjects’ risk attitudes and inequality aversion are elicited, as well as the traits of neuroticism and agreeableness, captured through the five-factor model. The findings suggest that trustors’ (first movers) behavior is affected by their loss aversion, while trustees’ (second movers) reciprocal behavior is not explained by any of their other-regarding attitudes, but, rather, by their agreeableness.
Hold up and intergenerational transmission of preferences
2004
This paper focuses on the formation, evolution and stability of the distribution of preferences in the population and its relationship with the investment and bargaining strategies in a simplified hold up problem. More precisely, in our model a population of infinitely-lived players (say, for example, firms) with homogeneous selfish or self-regarding preferences is pair-wise matched at each period with a population of an equal size of short-lived players (say, for example, workers) with heterogeneous preferences. Both types of player play a two-stage game. In the first stage, they decide separately but simultaneously whether to make a general or a relation-specific investment. The latter ty…
Carry a big stick, or no stick at all
2016
We investigate the effect of costly punishment in a trust game with endowment heterogeneity. Our findings indicate that the difference between the investor and the allocator’s initial endowments determines the effect of punishment on trust and trustworthiness. Punishment fosters trust only when the investor is wealthier than the allocator. Otherwise, punishment fails to promote trusting behavior. As for trustworthiness, the effect is just the opposite. The higher the difference between the investor and the allocator’s initial endowments, the less willing allocators are to pay back. We discuss the consistency of our findings with social preference models (like inequality aversion, reciprocit…
The interplay of reciprocity propensity and inequality aversion in two-person games
2020
Economic normative models assume that economic actors are fully rational and selfish while recent studies acknowledge the emotional influence of an economic decision and call for further investigation of biases in decision making. Most decisions involve multiple actors who make decisions following a sequential path as reflected by decision trees; this contingency makes a call for the game theory contribution in the economic decision field. Two-person games are widely used to represent a typical framework of economic decisions. This study aims at further investigating psychological biases affecting decisions in a two-person sequential game. So far similar studies have focused on the principa…