Motivated Beliefs, Independence and Cooperation

B-Tier
Journal: European Economic Review
Year: 2024
Volume: 166
Issue: C

Authors (3)

Huang, Wei (not in RePEc) Wang, Yu (not in RePEc) Zhao, Xiaojian (Monash University)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Humans are social beings but sometimes stay alone. This paper theoretically investigates the connection between an intraperson game and an interperson interaction. Motivated beliefs supplied from memory management due to present bias in the individual investment problem yields positive spillovers on others through social interactions. This suggests that frequent social interactions may reduce an individual’s inclination to cooperate, exacerbating the free-riding problem. Additionally, the paper establishes a positive correlation between overconfidence and prosocial attitudes, both of which may emerge and persist through life experiences. Evidence from cross-country psychological surveys at the country level and an online experiment at the individual level largely aligns with our theoretical implications.

Technical Details

RePEc Handle
repec:eee:eecrev:v:166:y:2024:i:c:s0014292124000771
Journal Field
General
Author Count
3
Added to Database
2026-01-29