A representation theorem for guilt aversion

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2016
Volume: 125
Issue: C
Pages: 148-161

Authors (2)

Jensen, Martin Kaae (University of Nottingham) Kozlovskaya, Maria (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

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.

Technical Details

RePEc Handle
repec:eee:jeborg:v:125:y:2016:i:c:p:148-161
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25