Download This PaperA Tractable Model of Reciprocity and Fairness
Andrew Young School of Policy Studies Research Paper Series No. 06-21
UC Santa Cruz Economics Working Paper No. 531
43 Pages Posted: 4 Mar 2003
Date Written: February 2006
Abstract
We introduce a parametric model of other-regarding preferences in which my emotional state determines the marginal rate of substitution between my own and others' 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.
Suggested Citation: Suggested Citation
James C. Cox
Georgia State University - Department of Economics ( email )
P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-651-8888 (Phone)
404-651-0425 (Fax)
CESifo (Center for Economic Studies and Ifo Institute)
Poschinger Str. 5
Munich, DE-81679
Germany
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