A Trackable Model of Reciprocity and Fairness

James Cox, Daniel Friedman and Steven Gjerstad ()

Purdue University Economics Working Papers from Purdue University, Department of Economics

Abstract: We introduced a parametric model of other-regarding preferences in which my emotional state determines the marginal rate of substitution between my own and other' payoffs, and thus my subsequent choices. In turn, my emotional state responds to relative status and to the kindness or unkindness of others' choices. Structural estimations of this model with six existing data sets demonstrate that other-regarding preferences depend on status, reciprocity, and perceived property rights.

Keywords: RECIPROCITY; MARGINAL RATE OF SUBSTITUTION; PAYOFFS (search for similar items in EconPapers)
JEL-codes: C90 D11 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2006-04
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https://business.purdue.edu/research/Working-papers-series/2006/1181.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 Tractable Model of Reciprocity and Fairness (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:pur:prukra:1181

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