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preferences depend directly on own or others’ beliefs. It allows for incorporating, e.g., emotions, reciprocity, image concerns …
Persistent link: https://www.econbiz.de/10012213185
We analyze vertical product differentiation in a model where a good's quality is unobservable to buyers before purchase, a continuum of quality levels is technologically feasible, and minimum quality is supplied under competitive conditions. After purchase the true quality of the good is...
Persistent link: https://www.econbiz.de/10011450700
This paper experimentally investigates how monetary incentives and emotions influence behaviour in a two-player power … by destroying his or her own endowment. We focus on how stake size (endowment) and emotions influence responses in China … small stake size. Second, emotions related to anger and joy mediate the impact of the take rate on destruction. Third …
Persistent link: https://www.econbiz.de/10011452814
. In this experimental study, we are primarily interested in how emotions influence responder behavior. Our findings are … significantly decreases the intensity of joy and happiness. Since negative emotions are experienced as painful, there is direct …) Expectations have a significant effect on the probability of punishment but not on the intensity of experienced emotion. This last …
Persistent link: https://www.econbiz.de/10009781606
Extending the power-to-take game, we explore the impact of two forces that may shape retaliation. In our 2x2 design, i) in addition to taking, the proposers can give part of their endowment to the responders, and ii) in addition to destroying their own endowment in retaliation, the responders...
Persistent link: https://www.econbiz.de/10014331767
We investigate whether there is a link between conditional cooperation and betrayal aversion. We use a public goods …
Persistent link: https://www.econbiz.de/10011298544
pillar is internalized norms of cooperation, sustained by emotions such as guilt and shame. The second pillar is the … motivation can sustain cooperation if enough people cooperate but can jeopardise social order if many others follow selfish …
Persistent link: https://www.econbiz.de/10010337527
This paper performs a welfare analysis of economies with private information when public information is endogenously generated and agents can condition on noisy public statistics in the rational expectations tradition. We find that equilibrium is not (restricted) efficient even when feasible...
Persistent link: https://www.econbiz.de/10009153832
We model competition on a credence market governed by an imperfect label, signaling high quality, as a rank-order tournament between firms. In this market interaction, asymmetric firms jointly and competitively control the underlying quality ranking's precision by releasing individual...
Persistent link: https://www.econbiz.de/10014336462
We derive, compare, and test the predictions of three models of gift exchange: Classical (CGE); Augmented (AGE) based on unexpected wage surprises and first order beliefs; and Belief-based (BGE) that uses second order beliefs to formally model guilt-aversion. Motivated by Akerlof (1982), we also...
Persistent link: https://www.econbiz.de/10012499512