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The dark side of friendship: envy

Author

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  • Ramón Cobo-Reyes

    (Department of Economic Theory and Economic History, University of Granada.)

  • Natalia Jiménez

    (Department of Economic Theory and Economic History, University of Granada.)

Abstract

This paper studies the e¤ect of social relations on the convergence to the e¢ cient equilibrium in a 2x2 coordination game. We employ a 2x2 factorial design in which we explore two di¤erent games with asymmetric payo¤s and two matching protocols: .friends.versus .strangers.. In the .rst game payo¤s of the worse o¤ player are the same in the two equilibria, whereas in the second game, this player must sacri.ce her own payo¤ for achieving the e¢ cient equilibrium. Results show that .strangers. coor- dinate more frequently in the e¢ cient equilibrium than .friends.in both games. Regarding network measures, (such us degree in, degree out and betweenness) they are all positively correlated with the strategy which leads to the e¢ cient outcome except clustering. In addition, envy is a salient factor in explaining e¢ cient convergence.

Suggested Citation

  • Ramón Cobo-Reyes & Natalia Jiménez, 2007. "The dark side of friendship: envy," ThE Papers 07/07, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:07/07
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    Cited by:

    1. Filippin, Antonio & Crosetto, Paolo, 2014. "A Reconsideration of Gender Differences in Risk Attitudes," IZA Discussion Papers 8184, Institute of Labor Economics (IZA).
    2. Pablo Branas-Garza & Ramon Cobo-Reyes & Natalia Jimenez & Giovanni Pontiy, 2013. "A Guided Tour to (Real-Life) Social Network Elicitation," Working Papers 13-21, Chapman University, Economic Science Institute.
    3. Shupp, Robert & Sheremeta, Roman M. & Schmidt, David & Walker, James, 2013. "Resource allocation contests: Experimental evidence," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 257-267.
    4. Gago, Andrés, 2021. "Reciprocity and uncertainty: When do people forgive?," Journal of Economic Psychology, Elsevier, vol. 84(C).
    5. Antonio Filippin & Paolo Crosetto, 2016. "A Reconsideration of Gender Differences in Risk Attitudes," Management Science, INFORMS, vol. 62(11), pages 3138-3160, November.
    6. Pablo Branas-Garza & Natalia Jimenez & Giovanni Ponti, 2017. "Eliciting real-life social networks: a guided tour," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(1), pages 33-39, February.

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    More about this item

    Keywords

    coordination; efficiency; envy; experiments; friendship; social networks.;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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