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Guilt and participation

Author

Listed:
  • Amrish Patel

    (University of East Anglia)

  • Alec Smith

    (Virginia Tech University)

Abstract

How does guilt affect participation in providing public goods? We characterise and analyse completely mixed symmetric equilibria (CMSE) in participation games where players are guilt averse. We find that relative to material preferences, guilt aversion can: facilitate the existence of CMSE; increase or decrease participation; and imply that group size has a non-monotonic effect on participation. Using our equilibrium characterisation we also re-analyse experimental data on participation games and find a low, but positive, guilt sensitivity parameter.

Suggested Citation

  • Amrish Patel & Alec Smith, 2018. "Guilt and participation," University of East Anglia School of Economics Working Paper Series 2018-01, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaeco:2018_01
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    File URL: https://ueaeco.github.io/working-papers/papers/ueaeco/UEA-ECO-18-01.pdf
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    References listed on IDEAS

    as
    1. Charles Bellemare & Alexander Sebald & Martin Strobel, 2011. "Measuring the willingness to pay to avoid guilt: estimation using equilibrium and stated belief models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(3), pages 437-453, April.
    2. repec:eee:gamebe:v:106:y:2017:i:c:p:161-178 is not listed on IDEAS
    3. Giuseppe Attanasi & Pierpaolo Battigalli & Rosemarie Nagel, 2013. "Disclosure of Belief-Dependent Preferences in a Trust Game," Working Papers 506, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    4. Ederer, Florian & Stremitzer, Alexander, 2017. "Promises and expectations," Games and Economic Behavior, Elsevier, vol. 106(C), pages 161-178.
    5. Dufwenberg, Martin & Patel, Amrish, 2017. "Reciprocity networks and the participation problem," Games and Economic Behavior, Elsevier, vol. 101(C), pages 260-272.
    6. Bellemare, Charles & Sebald, Alexander & Suetens, Sigrid, 2017. "A note on testing guilt aversion," Games and Economic Behavior, Elsevier, vol. 102(C), pages 233-239.
    7. Goeree, Jacob K. & Holt, Charles A. & Smith, Angela M., 2017. "An experimental examination of the volunteer's dilemma," Games and Economic Behavior, Elsevier, vol. 102(C), pages 303-315.
    Full references (including those not matched with items on IDEAS)

    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).

    More about this item

    Keywords

    participation; threshold public good; volunteer's dilemma; psychological games; guilt aversion;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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