Public goods games and psychological utility: Theory and evidence

• Published in: Journal of economic behavior & organization Vol. 167; pp. 361 - 390
• Main Authors: Dhami, Sanjit, Wei, Mengxing, al-Nowaihi, Ali
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.11.2019
• Subjects: Attribution of intentions; D01; D03; H41; Induced beliefs method; Psychological game theory; Public goods games; Reciprocity; Surprise-seeking/guilt-aversion; Within and between subjects designs; Induced beliefs method; D01; H41; Reciprocity; D03; Public goods games; Surprise-seeking/guilt-aversion; Within and between subjects designs; Psychological game theory; Attribution of intentions
• ISSN: 0167-2681; 1879-1751
• DOI: 10.1016/j.jebo.2017.11.002

•Guilt-aversion is far more important than surprise-seeking.•Attribution of intentions behind guilt-aversion/surprise-seeking is important.•The between-subjects analysis confirms the results of the within-subjects design. We consider a theoretical model of a public goods game that incorporates reciprocity, guilt-aversion/surprise-seeking, and the attribution of intentions behind these emotions. In order to test our predictions, we implement the ‘induced beliefs method’ and a within-subjects design, using the strategy method. We find that all our psychological variables contribute towards the explanation of contributions. Guilt-aversion is pervasive at the individual-level and the aggregate-level and it is relatively more important than surprise-seeking. Our between-subjects analysis confirms the results of the within-subjects design.