Envy in Othello. Can effort explain such a tragic issue?
We aim at disentangling the impact of effort on social emotions and more particularly on envy. Thus we observe the impact of effort on individual well-being and behaviour. In our experiment subjects are paired and receive endowments whether according to their performance in a real-effort task or randomly. We focus on subjects placed in situations of inferiority and ask them to report their satisfaction level before and after being exposed to unflattering social comparison. Finally, subjects can choose to reduce their opponent’s endowment by incurring a personal cost. We convey that the introduction of effort does not affect individual well-being and partially subjects’ decisions to reduce others’ income. Subjects do not reduce more often their opponent’s endowment but they cut a greater portion of their opponent’s endowment when endowments are attributed according to individual performance. Besides we observe that poor performing subjects are more prone to reduce others’ income than high performing ones. We also find evidences suggesting that envy is ought to explain reduction decisions engaged by high performing subjects and disappointment explicates reduction decisions engaged by low performing ones.
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"A structural analysis of disappointment aversion in a real effort competition,"
Discussion Paper Series In Economics And Econometrics
1006, Economics Division, School of Social Sciences, University of Southampton.
- David Gill & Victoria Prowse, 2012. "A Structural Analysis of Disappointment Aversion in a Real Effort Competition," American Economic Review, American Economic Association, vol. 102(1), pages 469-503, February.
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- Gill, David & Prowse, Victoria L., 2009. "A Structural Analysis of Disappointment Aversion in a Real Effort Competition," IZA Discussion Papers 4536, Institute for the Study of Labor (IZA).
- David Gill & Victoria Prowse, 2011. "A Structural Analysis of Disappointment Aversion in a Real Effort Competition," Discussion Papers 2011001, University of Oxford, Nuffield College.
- van Winden, Frans & Krawczyk, Michal & Hopfensitz, Astrid, 2011.
"Investment, resolution of risk, and the role of affect,"
Journal of Economic Psychology,
Elsevier, vol. 32(6), pages 918-939.
- Hopfensitz, Astrid & Krawczyk, Michal & van Winden, Frans A.A.M., 2008. "Investment, Resolution of Risk, and the Role of Affect," CEPR Discussion Papers 6822, C.E.P.R. Discussion Papers.
- Hopfensitz, Astrid & Krawczyk, Michal & Van Winden, Frans, 2009. "Investment, Resolution of Risk, and the Role of Affect," TSE Working Papers 09-123, Toulouse School of Economics (TSE).
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- Mui, V.L., 1992.
"The Economics of Envy,"
9306, Southern California - Department of Economics.
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