Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
We use a large public dataset of proposer-responder games to examine other-regarding preferences and beliefs. We model preferences and beliefs within a quantal response equilibrium framework using a non-linear mixed logit model that takes individual heterogeneity into account. Several measures indicate that parameters are reliably identified. Our participants are heterogeneous with respect to preferences and more so with regard to beliefs about others’ preferences. On average, proposers overestimate responders’ aversion to advantageous inequality, and think of responders as more averse to advantageous inequality and less averse to disadvantageous inequality than themselves. These findings are consistent with an optimism bias.