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Direct Tests of Models of Social Preferences and a New Model

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  • James C. Cox
  • Vjollca Sadiraj

Abstract

Departures from "economic man" behavior in many games in which fairness is a salient characteristic are now well documented in the experimental economics literature. These data have inspired development of new models of social preferences incorporating inequality aversion and quasi-maximin preferences. We report experiments that provide direct tests of these social preference models. Data from the experiments motivate a new model of egocentric altruism. The model rationalizes data from our direct test experiments and data from experiments with proposer competition and responder competition. We discuss generalizations of the egocentric altruism model that incorporate agentsâ?? intentions and thus provide a unified approach to modeling behavior in games both with and without reciprocal motivation.

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File URL: http://excen.gsu.edu/workingpapers/GSU_EXCEN_WP_2006-13.pdf
File Function: First version, 2006
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File URL: http://excen.gsu.edu/workingpapers/GSU_EXCEN_WP_2010-03.pdf
File Function: Revised version, 2010
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Bibliographic Info

Paper provided by Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University in its series Experimental Economics Center Working Paper Series with number 2006-13.

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Length: 37
Date of creation:
Date of revision: Jul 2010
Handle: RePEc:exc:wpaper:2006-13

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Cited by:
  1. Jim C. Cox & Daniel Friedman & Vjollca Sadiraj, 2005. "Revealed Altruism," Levine's Bibliography 784828000000000595, UCLA Department of Economics.
  2. James Cox & Daniel Friedman & Steven Gjerstad, 2004. "A Tractable Model of Reciprocity and Fairness," Experimental 0406001, EconWPA.
  3. James C. Cox & Cary A. Deck, 2006. "Assigning Intentions when Actions Are Unobservable: The Impact of Trembling in the Trust Game," Southern Economic Journal, Southern Economic Association, vol. 73(2), pages 307–314, October.
  4. Korenok, Oleg & Millner, Edward L. & Razzolini, Laura, 2013. "Impure altruism in dictators' giving," Journal of Public Economics, Elsevier, vol. 97(C), pages 1-8.
  5. John Smith, 2012. "The endogenous nature of the measurement of social preferences," Mind and Society: Cognitive Studies in Economics and Social Sciences, Fondazione Rosselli, vol. 11(2), pages 235-256, December.
  6. Dufwenberg, Martin & Heidhues, Paul & Kirchsteiger, Georg & Riedel, Frank & Sobel, Joel, 2008. "Other-Regarding Preferences in General Equilibrium," CEPR Discussion Papers 6815, C.E.P.R. Discussion Papers.
  7. Luciano Andreozzi & Matteo Ploner & Ivan Soraperra, 2013. "Justice among strangers. On altruism, inequality aversion and fairness," CEEL Working Papers 1304, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
  8. Joel Sobel, 2009. "Generous actors, selfish actions: markets with other-regarding preferences," International Review of Economics, Springer, vol. 56(1), pages 3-16, March.

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