Direct Tests of Models of Social Preferences and a New Model

38 Pages Posted: 31 Mar 2007

See all articles by James C. Cox

James C. Cox

Georgia State University - Department of Economics

Vjollca Sadiraj

Georgia State University - Department of Economics

Date Written: August 2006

Abstract

Departures from "economic man" behavior in many games in which fairness is a salient characteristic are now well documented in the experimental economics literature. These data have inspired development of new models of social preferences incorporating inequality aversion and quasi-maximin preferences. We report experiments that provide direct tests of these social preference models. Data from the experiments motivate a new model of egocentric altruism. The model rationalizes data from our direct test experiments and data from experiments with proposer competition and responder competition. We discuss generalizations of the egocentric altruism model that incorporate agents' intentions and thus provide a unified approach to modeling behavior in games both with and without reciprocal motivation.

Keywords: Social preferences, fairness, experiments

JEL Classification: A12, A13, B49, C70, C91, D63

Suggested Citation

Cox, James C. and Sadiraj, Vjollca, Direct Tests of Models of Social Preferences and a New Model (August 2006). Andrew Young School of Policy Studies Research Paper Series No. 07-13, Available at SSRN: https://ssrn.com/abstract=976027 or http://dx.doi.org/10.2139/ssrn.976027

James C. Cox (Contact Author)

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)

Vjollca Sadiraj

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

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