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Promises & Partnership Author info | Abstract | Publisher info | Download info | Related research | Statistics Gary Charness (University of California, Santa Barbara)
Martin Dufwenberg
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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 in order 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 variety of settings, and that it may shed light on the role of language, discussions, agreements, and social norms in these contexts.
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Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number
07-06.
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Date of creation: 19 May 2006Date of revision:
Handle: RePEc:cdl:ucsbec:07-06Note: oai:cdlib1:Contact details of provider: Postal: 2127 North Hall, Santa Barbara, CA 93106-9210 Phone: (805) 893-3670 Fax: (805) 893-8830 Web page: http://repositories.cdlib.org/ucsbecon/dwp/ More information through EDIRC
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Keywords: Promises ; partnership ; guilt aversion ; psychological game theory ; beliefs ; trust ; lies ; social preferences ; behavioral economics ; hidden action ; Other versions of this item:
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.: Jeannette Brosig & Axel Ockenfels & Joachim Weimann, 2002.
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Experimental Economics ,
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"Marital investments, time consistency and emotions ,"
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Games and Economic Behavior ,
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"Deception and Retribution in Repeated Ultimatum Bargaining ,"
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"Efficient Contracting and Fair Play in a Simple Principal-Agent Experiment ,"
Experimental Economics ,
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Other versions: Berg Joyce & Dickhaut John & McCabe Kevin, 1995.
"Trust, Reciprocity, and Social History ,"
Games and Economic Behavior ,
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Games and Economic Behavior ,
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Games and Economic Behavior ,
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Ernst Fehr & Klaus M. Schmidt, 1999.
"A Theory Of Fairness, Competition, And Cooperation ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 114(3), pages 817-868, August.
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Other versions:
Ernst Fehr & Klaus M. Schmidt, .
"A Theory of Fairness, Competition and Cooperation ,"
IEW - Working Papers
iewwp004, Institute for Empirical Research in Economics - IEW.
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CEPR Discussion Papers
1812, C.E.P.R. Discussion Papers.
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Games and Economic Behavior ,
Elsevier, vol. 59(1), pages 17-45, April.
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James C. Cox & Daniel Friedman & Steven Gjerstad, 2006.
"A Tractable Model of Reciprocity and Fairness ,"
Experimental Economics Center Working Paper Series
2006-05, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
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"A Trackable Model of Reciprocity and Fairness ,"
Purdue University Economics Working Papers
1181, Purdue University, Department of Economics.
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"A Tractable Model of Reciprocity and Fairness ,"
Experimental
0406001, EconWPA.
[Downloadable!] R. Lynn Hannan & John H. Kagel & Donald V. Moser, 2002.
"Partial Gift Exchange in an Experimental Labor Market: Impact of Subject Population Differences, Productivity Differences, and Effort Requests on Behavior ,"
Journal of Labor Economics ,
University of Chicago Press, vol. 20(4), pages 923-951, October.
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Werner Güth & Wolfgang Klose & Manfred Königstein & Joachim Schwalbach, 1998.
"An experimental study of a dynamic principal-agent relationship ,"
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Econometrica ,
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Crawford, Vincent, 1998.
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Fehr, Ernst & Schmidt, Klaus M., 2001.
"Theories of Fairness and Reciprocity - Evidence and Economic Applications ,"
CEPR Discussion Papers
2703, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
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.)
Sebastian Kranz, 2006.
"Moral Norms in a Partly Compliant Society ,"
Levine's Bibliography
321307000000000092, UCLA Department of Economics.
[Downloadable!]
Other versions: Heike Hennig-Schmidt & Zhu-Yu Li & Chaoliang Yang, 2004.
"Why People Reject Advantageous Offers – Non-monotone Strategies in Ultimatum Bargaining ,"
Bonn Econ Discussion Papers
bgse22_2004, University of Bonn, Germany.
[Downloadable!]
José Apesteguia & Martin Dufwenberg & Reinhard Selten, 2003.
"Blowing the Whistle ,"
Bonn Econ Discussion Papers
bgse9_2003, University of Bonn, Germany.
[Downloadable!]
Other versions:
José Apesteguía & Martin Dufwenberg & Reinhard Selten, 2003.
"Blowing the Whistle ,"
Documentos de Trabajo - Lan Gaiak Departamento de EconomÃa - Universidad Pública de Navarra
0303, Departamento de Economía - Universidad Pública de Navarra, revised 2003.
[Downloadable!] Apesteguia, Jose & Dufwenberg, Martin & Selten, Reinhard, 2003.
"Blowing the Whistle ,"
Research Papers in Economics
2003:5, Stockholm University, Department of Economics.
[Downloadable!] Jose Apesteguia & Martin Dufwenberg & Reinhard Selten, 2007.
"Blowing the Whistle ,"
Economic Theory ,
Springer, vol. 31(1), pages 143-166, April.
[Downloadable!] (restricted) Michele Belot, & V. Bhaskar & Jeroen van de Ven, 2006.
"A Public Dilemma: Cooperation with Large Stakes and a Large Audience ,"
Economics Discussion Papers
617, University of Essex, Department of Economics.
[Downloadable!]
Werner Güth & René Levínský & Tobias Uske & Thomas Gehrig, 2006.
"I want to know: Willingness to pay for unconditional veto power ,"
Papers on Strategic Interaction
2006-21, Max Planck Institute of Economics, Strategic Interaction Group.
[Downloadable!]
Olivier Armantier & Nicolas Treich, 2006.
"Overbidding in Independant Private-Values Auctions and Misperception of Probabilities ,"
CIRANO Working Papers
2006s-15, CIRANO.
[Downloadable!]
Martin Dufwenberg & Werner Gueth, 2001.
"The Psychological Game of Trust ,"
Papers on Strategic Interaction
2004-19, Max Planck Institute of Economics, Strategic Interaction Group.
[Downloadable!]
Topi Miettinen, 2006.
"Promises and Conventions - An Approach to Pre-play Agreements ,"
Papers on Strategic Interaction
2006-29, Max Planck Institute of Economics, Strategic Interaction Group.
[Downloadable!]
Holm, Håkan & Daielson, Anders, 2004.
"Fairness and Promises for Sale ,"
Working Papers
2004:18, Lund University, Department of Economics, revised 15 Aug 2005.
[Downloadable!]
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