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A Representation Theorem for Guilt Aversion
journal contribution
posted on 2016-06-14, 12:11 authored by Martin Kaae Jensen, Maria KozlovskayaGuilt aversion has been shown to play an important role in economic decision-making. In this paper, we take an axiomatic approach to guilt by deducing a utility representation from a list of easily interpretable assumptions on an agent's preferences. It turns out that our logarithmic representation can mitigate the problem of multiplicity of equilibria to which psychological games are prone. We apply the model in three well-known games and show that its predictions are consistent with experimental observations.
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Citation
Journal of Economic Behavior and Organization, 2016, 125, pp. 148-161Author affiliation
/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/Department of EconomicsVersion
- AM (Accepted Manuscript)
Published in
Journal of Economic Behavior and OrganizationPublisher
Elsevierissn
0167-2681Acceptance date
2016-02-11Copyright date
2016Available date
2019-03-05Publisher DOI
Publisher version
http://www.sciencedirect.com/science/article/pii/S0167268116000238Notes
The file associated with this record is under a 36-month embargo from publication in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.Language
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