Abstract

http://ssrn.com/abstract=308903
 
 

References (56)



 
 

Citations (35)



 


 



Emotional Hazard in a Power-to-take Experiment


Ronald Bosman


De Nederlandsche Bank - Monetary and Economic Policy Department

Frans Van Winden


University of Amsterdam - Faculty of Economics and Business (FEB); CESifo (Center for Economic Studies and Ifo Institute)


The Economic Journal, Vol. 112, pp. 147-169, 2002

Abstract:     
In this experimental study of a two player power-to-take game, players earn an income in an individual effort task preceding the game. The game has two stages. First, one player can claim any part of the other's income (take rate). Then, the latter player can respond by destroying own income. We focus on how emotions influence responses and show: (1) a higher take rate increases (decreases) intensity of negative (positive) emotions; (2) negative emotions drive destruction; (3) at high emotional intensity, responders destroy everything; (4) expectations affect the probability of punishment. Emotional hazard is identified as a new source of efficiency costs.

Number of Pages in PDF File: 23

Accepted Paper Series


Date posted: November 13, 2002  

Suggested Citation

Bosman, Ronald and van Winden, Frans, Emotional Hazard in a Power-to-take Experiment. The Economic Journal, Vol. 112, pp. 147-169, 2002. Available at SSRN: http://ssrn.com/abstract=308903

Contact Information

Ronald Bosman (Contact Author)
De Nederlandsche Bank - Monetary and Economic Policy Department ( email )
Westeinde 1
1017 ZN Amsterdam
Netherlands
+31 20 524 5772 (Phone)
+31 20 524 2506 (Fax)
Frans Van Winden
University of Amsterdam - Faculty of Economics and Business (FEB) ( email )
Roetersstraat 18
CREED
Amsterdam 1018 WB
Netherlands
+31 20 525 4126 (Phone)
+31 20 525 5283 (Fax)
CESifo (Center for Economic Studies and Ifo Institute) ( email )
Poschinger Str. 5
Munich, DE-81679
Germany
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References:  56
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