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Interpersonal allocation behavior in a household saving experiment

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Author Info
Vital Anderhuba
Dennis A. V. Dittrich ()
Werner Güth ()
Nadege Marchandd

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Abstract

We investigate the intertemporal allocation behavior of spouses with different deterministic life expectations in an experiment. In each period of their life both partners propose a consumption level of which one is then randomly implemented. In spite of the complex dynamics optimal behavior is rather simple and straightforward in the sense of conditional consumption smoothing. A substantial number of participants does not care whether their partner receives any payoff. This selfish behavior is punished by their partners.On average participants stay on egoistic consuption paths, although in later periods their behavior shifts in the direction of consumption paths leading to equal payoffs.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2002-02.

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Length: 26 pages
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Handle: RePEc:esi:discus:2002-02

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Related research
Keywords: experimental economics; considerate attitudes; random dictatorship;

Find related papers by JEL classification:
C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving

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.:

  1. Matthew Rabin., 2000. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Economics Working Papers E00-279, University of California at Berkeley. [Downloadable!]
  2. Chen, Zhiqi & Woolley, Frances, 2001. "A Cournot-Nash Model of Family Decision Making," Economic Journal, Royal Economic Society, vol. 111(474), pages 722-48, October. [Downloadable!] (restricted)
    Other versions:
  3. Meier, Katja & Kirchler, Erich & Hubert, Angela-Christian, 1999. "Savings and investment decisions within private households: Spouses' dominance in decisions on various forms of investment," Journal of Economic Psychology, Elsevier, vol. 20(5), pages 499-519, October. [Downloadable!] (restricted)
  4. Matthew Rabin, 2000. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Department of Economics, Working Paper Series 1034, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
  5. Werner Guth & Radosveta Ivanova-Stenzel & Sigve Tjotta, 2004. "Please, Marry Me! An Experimental Study of Risking a Joint Venture," Metroeconomica, Blackwell Publishing, vol. 55(1), pages 1-21, 02. [Downloadable!] (restricted)
    Other versions:
  6. Browning, Martin, 2000. " The Saving Behaviour of a Two-Person Household," Scandinavian Journal of Economics, Blackwell Publishing, vol. 102(2), pages 235-51, June. [Downloadable!] (restricted)
    Other versions:
  7. V. Anderhub & W. Güth, . "On Intertemporal Allocation Behavior - A Selective Survey of Saving Experiments -," Sonderforschungsbereich 373 1999-8, Humboldt Universitaet Berlin.
  8. Vital Anderhub & Werner Gäuth & Wieland Mäuller & Martin Strobel, 2000. "An Experimental Analysis of Intertemporal Allocation Behavior," Experimental Economics, Springer, vol. 3(2), pages 137-152, October. [Downloadable!] (restricted)
  9. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February. [Downloadable!] (restricted)
  10. Wirl, Franz & Feichtinger, Gustav, 2002. "Intrafamiliar Consumption and Saving under Altruism and Wealth Considerations," Economica, London School of Economics and Political Science, vol. 69(273), pages 93-111, February. [Downloadable!] (restricted)
  11. Lundberg, Shelly & Pollak, Robert A, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-58, Fall. [Downloadable!] (restricted)
  12. Matthew Rabin, 2000. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Econometrica, Econometric Society, vol. 68(5), pages 1281-1292, September.
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. Susanne Büchner & Dennis A. V. Dittrich, 2002. "I will survive! -- Gender discrimination in a household saving decisions experiment," Papers on Strategic Interaction 2002-14, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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This page was last updated on 2009-11-25.


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