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Two Economic Applications of Sympathy

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  • David Sally

Abstract

The notion of sympathy is analyzed in the setting of coordination between duopolists and in the setting of the sale of a used car of possibly low quality. In both cases, the analysis suggests a number of empirical regularities concerning the effects of social interaction, physical distance, and psychological affinity. These regularities are confirmed by various historical accounts of collusion and by national survey results on used car purchases. Copyright 2002, Oxford University Press.

Suggested Citation

  • David Sally, 2002. "Two Economic Applications of Sympathy," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 18(2), pages 455-487, October.
    • Handle: RePEc:oup:jleorg:v:18:y:2002:i:2:p:455-487
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    Cited by:

    1. Benjamin Ho, 2012. "Apologies as Signals: With Evidence from a Trust Game," Management Science, INFORMS, vol. 58(1), pages 141-158, January.
    2. David Sally, 2002. "`What an Ugly Baby!'," Rationality and Society, , vol. 14(1), pages 78-108, February.
    3. Paul J Zak & Angela A Stanton & Sheila Ahmadi, 2007. "Oxytocin Increases Generosity in Humans," PLOS ONE, Public Library of Science, vol. 2(11), pages 1-5, November.
    4. José Atilano Pena López & José Manuel Sánchez Santos, 2007. "Los fundamentos morales de la economía: una relectura del problema de Adam Smith," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 9(16), pages 63-87, January-J.
    5. Rebitzer, James B. & Taylor, Lowell J., 2011. "Extrinsic Rewards and Intrinsic Motives: Standard and Behavioral Approaches to Agency and Labor Markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 8, pages 701-772, Elsevier.
    6. Robison, Lindon J. & Siles, Marcelo E. & Schmid, A. Allan, 2002. "Social Capital And Poverty Reduction: Toward A Mature Paradigm," Agricultural Economic Report Series 10941, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    7. Francesca Gino & Lamar Pierce, 2010. "Robin Hood Under the Hood: Wealth-Based Discrimination in Illicit Customer Help," Organization Science, INFORMS, vol. 21(6), pages 1176-1194, December.
    8. Zak, Paul J., 2011. "Moral markets," Journal of Economic Behavior & Organization, Elsevier, vol. 77(2), pages 212-233, February.

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