A Tractable Model of Reciprocity and Fairness

James Cox, Daniel Friedman and Steven Gjerstad ()

Experimental from University Library of Munich, Germany

Abstract: We introduce a parametric model of other-regarding preferences. The income distribution and the kindness or unkindness of others' choices ('intentions') systematically affect a person's emotional state. The emotional state systematically affects the marginal rate of substitution between own and others' payoffs, and thus the person's subsequent choices. The model is applied to two sets of laboratory data: simple binary choice mini-ultimatum games, and Stackelberg duopoly games with a range of choices. The results confirm that other-regarding preferences respond to others' intentions as well as to the income distribution.

JEL-codes: C92 D1 D43 L2 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2004-06-08
New Economics Papers: this item is included in nep-cbe and nep-evo
Note: Type of Document - pdf; pages: 33
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/exp/papers/0406/0406001.pdf (application/pdf)

Related works:
Journal Article: A tractable model of reciprocity and fairness (2007)
Working Paper: A Tractable Model of Reciprocity and Fairness (2006)
Working Paper: A Trackable Model of Reciprocity and Fairness (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpex:0406001

Access Statistics for this paper

More papers in Experimental from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).