Other-regarding behaviour: Testing guilt- and reciprocity-based models
We analyse two types of belief-dependant models of social preferences: guilt aversion and reciprocity. In particular, we test the relevance of their input variables (second-order beliefs and general dispositions for guilt/reciprocity). The data confirm the predictions of belief-dependant models. Both second-order beliefs and a participant's sensitivity to guilt/reciprocity are relevant for the decisions taken. Second-order beliefs appear to have an inverse U-shaped effect on the extent of kind behaviour.
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