knowledge. We test this result in a laboratory experiment. The data cannot confirm the predicted welfare dominance of private …

called for. We take a first step in this direction focusing on models of guilt aversion in the Trust Game. We consider two … alternative modeling assumptions: (i) guilt aversion depends on the role played in the game, because only the trustee can feel … guilt for letting the co-player down, (ii) guilt aversion is independent of the role played in the game. We show how the set …