A Theory of Endogenous Sentiments

Laurence Kranich () and Joan Esteban ()

No 102, Working Papers from Barcelona School of Economics

Abstract: We present a model in which each agent's sentiments toward others are determined endogenously on the basis of how they behave relative to a standard of appropriate behavior. As sentiments change, so too does the optimal behavior of each individual, which in turn affects other agents' sentiments toward them. We focus on fixed points of this reciprocal adjustment process. To demonstrate the potential use and implications of such a model, we present an extended example involving team production. We then consider various standards of behavior, and we examine stationary patterns of behavior and sentiments under each.

Keywords: Endogenous altruism; social contract; group formation (search for similar items in EconPapers)
JEL-codes: D31 D50 D64 (search for similar items in EconPapers)
Date: 2015-09
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Citations: View citations in EconPapers (2)

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Working Paper: A Theory of Endogenous Sentiments (2002)
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