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Ashamed to be Selfish

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Author Info
Dillenberger, David
Sadowski, Philipp

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Abstract

We study a two-stage choice problem, where alternatives are allocations between the decision maker (DM) and a passive recipient. The recipient observes choice behavior in stage two, while stage one choice is unobserved. Choosing selfishly in stage two, in the face of a fairer available alternative, may inflict shame on DM. DM has preferences over sets of alternatives that represent period two choices. We axiomatize a representation that identifies DM's selfish ranking, her norm of fairness and shame. Altruism is the most prominent motive that can explain non-selfish choice. We identify a condition under which shame to be selfish can mimic altruism, when only stage-two choice is observed by the experimenter. An additional condition implies that the norm of fairness can be characterized as the Nash solution of a bargaining game induced by the second-stage choice problem. The representation is generalized to allow for finitely many recipients and applied to explain a social decision maker's incentive for obfuscation.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8343.

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Date of creation: 16 Apr 2008
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Handle: RePEc:pra:mprapa:8343

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Find related papers by JEL classification:
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
D64 - Microeconomics - - Welfare Economics - - - Altruism
D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy-Making and Implementation
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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  1. Johannesson, Magnus & Persson, Bjorn, 2000. "Non-reciprocal altruism in dictator games," Economics Letters, Elsevier, vol. 69(2), pages 137-142, November. [Downloadable!] (restricted)
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  3. Alexander K. Koch & Hans-Theo Normann, 2005. "Giving in Dictator Games: Regard for Others or Regard by Others?," Royal Holloway, University of London: Discussion Papers in Economics 05/09, Department of Economics, Royal Holloway University of London, revised Aug 2005. [Downloadable!]
    Other versions:
  4. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series 1042, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
    Other versions:
  5. Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer, vol. 27(2), pages 269-299. [Downloadable!] (restricted)
  6. Dana, Jason & Cain, Daylian M. & Dawes, Robyn M., 2006. "What you don't know won't hurt me: Costly (but quiet) exit in dictator games," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(2), pages 193-201, July. [Downloadable!] (restricted)
  7. BENABOU, Roland & TIROLE, Jean, 2003. "Incentives and Prosocial Behavior," IDEI Working Papers 389, Institut d'Économie Industrielle (IDEI), Toulouse, revised Jan 2006. [Downloadable!]
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  8. Mariotti, Marco, 1999. "Fair Bargains: Distributive Justice and Nash Bargaining Theory," Review of Economic Studies, Blackwell Publishing, vol. 66(3), pages 733-41, July. [Downloadable!] (restricted)
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  9. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April. [Downloadable!] (restricted)
  10. Broberg, Tomas & Ellingsen, Tore & Johannesson, Magnus, 2007. "Is generosity involuntary?," Economics Letters, Elsevier, vol. 94(1), pages 32-37, January. [Downloadable!] (restricted)
  11. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March. [Downloadable!] (restricted)
  12. Wittman, Donald, 1989. "Why Democracies Produce Efficient Results," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1395-1424, December. [Downloadable!] (restricted)
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Cited by:
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  1. Norio Takeoka, 2006. "Temptation, Certainty Effect, and Diminishing Self-Control," Levine's Bibliography 321307000000000507, UCLA Department of Economics. [Downloadable!]
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