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Affective empathy in non-cooperative games

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  • Vásquez, Jorge
  • Weretka, Marek

Abstract

In this paper, we examine strategic settings in which players have interdependent preferences. Players' utility functions depend not only on the strategy profile being played, but also on the realized utilities of other players. Thus, players' realized utilities are interdependent, capturing the psychological phenomena of affective empathy and emotional contagion. We offer a solution concept for these empathetic games and show that the set of equilibria is non-empty and, generically, finite. Motivated by psychological evidence, we then analyze sympathetic and antipathetic games. In the former, players' utilities increase in others' realized utilities, capturing unconditional friendship; in the latter, the opposite holds, resembling hostility.

Suggested Citation

  • Vásquez, Jorge & Weretka, Marek, 2020. "Affective empathy in non-cooperative games," Games and Economic Behavior, Elsevier, vol. 121(C), pages 548-564.
    • Handle: RePEc:eee:gamebe:v:121:y:2020:i:c:p:548-564
    DOI: 10.1016/j.geb.2019.10.005
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    Cited by:

    1. Jorge Vasquez & Marek Weretka, 2020. "Co-worker altruism and unemployment," GRAPE Working Papers 55, GRAPE Group for Research in Applied Economics.
    2. Bramoullé, Yann & ,, 2022. "Altruism Networks, Income Inequality, and Economic Relations," CEPR Discussion Papers 17000, C.E.P.R. Discussion Papers.
    3. Vásquez, Jorge & Weretka, Marek, 2021. "Co-worker altruism and unemployment," Games and Economic Behavior, Elsevier, vol. 130(C), pages 224-239.

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    More about this item

    Keywords

    Non-paternalistic preferences; Interdependent utilities; Affective empathy; Emotional contagion;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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