Your Morals are Your Moods
AbstractWe test the effect of players' moods on their behavior in a gift-exchange game.In the first stage of the game, player 1 chooses a transfer to player 2.In the second stage, player 2 chooses an effort level.Higher effort is more costly for player 2, but it increases player 1's payoff.We say that player 2 reciprocates if effort is increasing in the transfer received.Player 2 is generous if an effort is incurred even when no transfer is received.Subjects play this game in two different moods.To induce a `bad mood', subjects in the role of player 2 watched a sad movie before playing the game; to induce a `good mood', they watched a funny movie.Mood induction was effective: subjects who saw the funny movie reported a significantly better mood than those who saw the sad movie.These two moods lead to significant differences in player 2's behavior.We find that a bad mood implies more reciprocity while a good mood implies more generosity.Since high transfers are relatively more common, player 1 make more money when second movers are in a bad mood.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2000-122.
Date of creation: 2000
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rationality; motivation; game theory; emotions; reciprocity; gift giving;
Other versions of this item:
- Georg Kirchsteiger & Luca Rigotti & Aldo Rustichini, 2006. "Your Morals are Your Moods," ULB Institutional Repository 2013/149584, ULB -- Universite Libre de Bruxelles.
- Kirchsteiger, Georg & Rigotti, Luca & Rustichini, Aldo, 2001. "Your Morals Are Your Moods," Department of Economics, Working Paper Series qt5fh525g8, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Georg Kirchsteiger & Luca Rigotti & Aldo Rustichini, 2001. "Your Morals Are Your Moods," Game Theory and Information 0012005, EconWPA.
- Georg Kirchsteiger, Luca Rigotti and Aldo Rustichini., 2001. "Your Morals Are Your Moods," Economics Working Papers E01-294Rev, University of California at Berkeley.
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
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