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Promises and Partnership

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Author Info
Gary Charness
Martin Dufwenberg

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Abstract

We examine experimentally the impact of communication on trust and cooperation. Our design admits observation of promises, lies, and beliefs. The evidence is consistent with people striving to live up to others' expectations so as to avoid guilt, as can be modeled using psychological game theory. When players exhibit such guilt aversion, communication may influence motivation and behavior by influencing beliefs about beliefs. Promises may enhance trustworthy behavior, which is what we observe. We argue that guilt aversion may be relevant for understanding strategic interaction in a variety of settings, and that it may shed light on the role of language, discussions, agreements, and social norms in these contexts. Copyright The Econometric Society 2006.

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File URL: http://hdl.handle.net/10.1111/j.1468-0262.2006.00719.x
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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 74 (2006)
Issue (Month): 6 (November)
Pages: 1579-1601
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Handle: RePEc:ecm:emetrp:v:74:y:2006:i:6:p:1579-1601

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Bicchieri, Cristina & Erte, Xiao, 2007. "Do the right thing: But only if others do so," MPRA Paper 4609, University Library of Munich, Germany. [Downloadable!]
  2. J. Atsu Amegashie, 2006. "A Psychological Game with Interdependent Preference Types," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
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    Other versions:
  4. Santiago Sanchez-Pages & Marc Vorsatz, 2007. "Enjoy the Silence: An Experiment on Truth-Telling," ESE Discussion Papers 155, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
  5. Cason, Timothy N. & Mui, Vai-Lam, 2006. "Communication and Coordination in the Laboratory Collective Resistance Game," Purdue University Economics Working Papers 1197, Purdue University, Department of Economics. [Downloadable!]
    Other versions:
  6. Luca Corazzini, Sebastian Kube, Michel André Maréchal, 2007. "Towards a Behavioral Public Choice: Guilt-Aversion and Accountability in the Lab," ISLA Working Papers 27, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy. [Downloadable!]
  7. Topi Miettinen, 2007. "Moral Hazard and Clear Conscience," Jena Economic Research Papers in Economics 2007-008, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek. [Downloadable!]
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  10. Wendelin Schnedler & Radovan Vadovic, 2007. "Legitimacy of Control," The Centre for Market and Public Organisation 07/178, Department of Economics, University of Bristol, UK. [Downloadable!]
    Other versions:
  11. Christoph Vanberg, 2007. "Voting on a sharing norm in a dictator game," Jena Economic Research Papers in Economics 2007-036, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek. [Downloadable!]
  12. Erte Xiao & Daniel Houser, . "Emotion Expression and Fairness in Economic Exchange," Working Papers 1003, George Mason University, Interdisciplinary Center for Economic Science, revised Nov 2007. [Downloadable!]
  13. Laurent Denant-Boemont & David Masclet & Charles Noussair, 2005. "Announcement, Observation, and Honesty in the Voluntary Contributions Game," Emory Economics 0509, Department of Economics, Emory University (Atlanta). [Downloadable!]
  14. Bernd Irlenbusch & Dirk Sliwka, 2005. "Incentives, Decision Frames, and Motivation Crowding Out - An Experimental Investigation," IZA Discussion Papers 1758, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Dhaene G. & Bouckaert J., 2007. "Sequential Reciprocity in Two-Player, Two-Stage Games: An Experimental Analysis," Working Papers 2007026, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
    Other versions:
  16. Armin Falk & Michael Kosfeld, . "The Hidden Costs of Control," IEW - Working Papers iewwp250, Institute for Empirical Research in Economics - IEW. [Downloadable!]
    Other versions:
  17. Maroš Servátka & Steven Tucker & Radovan Vadovic, 2008. "Strategic Use of Trust," Working Papers in Economics 08/11, University of Canterbury, Department of Economics. [Downloadable!]
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