IDEAS home Printed from https://ideas.repec.org/a/cai/reldbu/rel_783_0101.html
   My bibliography  Save this article

Is it Betrayal Aversion or Regret Aversion ?

Author

Listed:
  • Itzhak Aharon

Abstract

Social and economic exchanges often occur between strangers who cannot rely on past behavior or the prospect of future interactions to establish mutual trust. Game theorists formalize this problem in several "one-shot? game ? such as the trust game - predicting noncooperation ? since the investor is not expecting trustee to reciprocate it is not rationally to invest. Bohnet and Zeckhauser (2004) suggest that, due to betrayal aversion, people seek to avoid situation in which one could be betrayed. We argue that this behavior could emerge also due to regret aversion. JEL Classification: A12, A13, D81.

Suggested Citation

  • Itzhak Aharon, 2012. "Is it Betrayal Aversion or Regret Aversion ?," Recherches économiques de Louvain, De Boeck Université, vol. 78(3), pages 101-114.
    • Handle: RePEc:cai:reldbu:rel_783_0101
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REL_783_0101
    Download Restriction: free
    File URL: http://www.cairn.info/revue-recherches-economiques-de-louvain-2012-3-page-101.htm
    Download Restriction: free
    ---><---

    More about this item

    Keywords

    trust; game theory; betrayal aversion; regret aversion; decision making; risk; gambling;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:reldbu:rel_783_0101. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jean-Baptiste de Vathaire (email available below). General contact details of provider: https://www.cairn.info/revue-recherches-economiques-de-louvain.htm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.