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A Simple Model of Guilt with an Application to Unstaffed Roadside Stands

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Abstract

This paper introduces an analysis of the notion of guilt, the 'bad feeling' we get when we harm someone. It is suggested that attempts to avoid the experience of guilt help to explain a variety of economic behaviors, such as those surrounding moral hazard in the workplace, voting, or criminal activities. A formal model of guilt is provided and used to explain the existence and other characteristics of unstaffed roadside stands.

Suggested Citation

  • Robert W Drago, "undated". "A Simple Model of Guilt with an Application to Unstaffed Roadside Stands," Working papers _008, University of Wisconsin - Milwaukee.
    • Handle: RePEc:wop:wimihp:_008
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    File URL: ftp://ftp.csd.uwm.edu/pub/drago/guil.chi
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    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General

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