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Guilt and participation

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Abstract

How does guilt affect participation in providing public goods? We characterise and analyse completely mixed symmetric equilibria (CMSE) in participation games where players are guilt averse. We find that relative to material preferences, guilt aversion can: facilitate the existence of CMSE; increase or decrease participation; and imply that group size has a non-monotonic effect on participation. Using our equilibrium characterisation we also re-analyse experimental data on participation games and find a low, but positive, guilt sensitivity parameter.

Details

Original languageEnglish
JournalJournal of Economic Behavior & Organization
Early online date8 Jul 2018
DOIs
Publication statusE-pub ahead of print - 8 Jul 2018
Peer-reviewedYes

Keywords

    Research areas

  • Participation, Threshold public good, Volunteer's dilemma, Psychological Games, Guilt aversion

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