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A Simple Model of Guilt with an Application to Unstaffed Roadside Stands

Robert W Drago ()
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Robert W Drago: University of Wisconsin - Milwaukee

Working papers from University of Wisconsin - Milwaukee

Abstract: This paper introduces an analysis of the notion of guilt, the 'bad feeling' we get when we harm someone. It is suggested that attempts to avoid the experience of guilt help to explain a variety of economic behaviors, such as those surrounding moral hazard in the workplace, voting, or criminal activities. A formal model of guilt is provided and used to explain the existence and other characteristics of unstaffed roadside stands.

JEL-codes: D20 L30 (search for similar items in EconPapers)
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Published in Fall 1995 Review of Social Economy

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