 Motivated Beliefs, Independence and CooperationWei Huang, Yu Wang and Xiaojian Zhao European Economic Review, 2024, vol. 166, issue C 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. Keywords: Motivated beliefs; Self-confidence; Present bias; Cooperation; Cultural difference (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:166:y:2024:i:c:s0014292124000771 DOI: 10.1016/j.euroecorev.2024.104748 Access Statistics for this article European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer More articles in European Economic Review from Elsevier |
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