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Heterogeneous guilt sensitivities and incentive effects

Author

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  • Charles Bellemare

    () (Université Laval, CRREP)

  • Alexander Sebald

    () (University of Copenhagen)

  • Sigrid Suetens

    () (Tilburg University)

Abstract

Abstract Psychological games of guilt aversion assume that preferences depend on (beliefs about) beliefs and on the guilt sensitivity of the decision-maker. We present an experiment designed to measure guilt sensitivities at the individual level for various stake sizes. We use the data to estimate a structural choice model that allows for heterogeneity, and permits that guilt sensitivities depend on stake size. We find substantial heterogeneity of guilt sensitivities in our population, with 60% of decision makers displaying stake-dependent guilt sensitivity. For these decision makers, we find that average guilt sensitivities are significantly different from zero for all stakes considered, while significantly decreasing with the level of stakes.

Suggested Citation

  • Charles Bellemare & Alexander Sebald & Sigrid Suetens, 2018. "Heterogeneous guilt sensitivities and incentive effects," Experimental Economics, Springer;Economic Science Association, vol. 21(2), pages 316-336, June.
    • Handle: RePEc:kap:expeco:v:21:y:2018:i:2:d:10.1007_s10683-017-9543-2
    DOI: 10.1007/s10683-017-9543-2
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Attanasi, Giuseppe & Rimbaud, Claire & Villeval, Marie Claire, 2018. "Embezzlement and Guilt Aversion," IZA Discussion Papers 11956, Institute of Labor Economics (IZA).
    2. repec:kap:jrisku:v:57:y:2018:i:1:d:10.1007_s11166-018-9286-2 is not listed on IDEAS
    3. repec:eee:joepsy:v:73:y:2019:i:c:p:52-59 is not listed on IDEAS
    4. Bellemare, Charles & Sebald, A. & Suetens, Sigrid, 2019. "Guilt Aversion in Economics and Psychology," Discussion Paper 2019-017, Tilburg University, Center for Economic Research.

    More about this item

    Keywords

    Guilt sensitivity; Psychological game theory; Heterogeneity; Stakes; Dictator game;

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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