Jensen, Martin Kaae and Kozlovskaya, Maria (2016) A Representation Theorem for Guilt Aversion. Journal of Economic Behavior and Organization, 125. pp. 148-161. ISSN 0167-2681
- Accepted Version
Restricted to Repository staff only until 5 September 2017.
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.
|Subjects:||H Social Sciences > HB Economic Theory|
|Schools:||The Business School
The Business School > Quantitative Analysis Research Group
|Depositing User:||Maria Kozlovskaya|
|Date Deposited:||29 Feb 2016 13:57|
|Last Modified:||01 Dec 2016 20:06|
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