Work

Emotional Hazard in a Power‐to‐Take Experiment

Year: 2002

Type: article

Abstract: In this experimental study of a two player power‐to‐take game, players earn an income in an individual effort task preceding the game. The game has two stages. First, one player can claim any part of the other’s income (take rate). Then, the latter player can respond by destroying own income. We focus on how emotions influence responses and show: (1) a higher take rate increases (decreases) intensity of negative (positive) emotions; (2) negative emotions drive destruction; (3) at high emotional intensity, responders destroy everything; (4) expectations affect the probability of punishment. Emotional hazard is identified as a new source of efficiency costs.

Source: The Economic Journal

DOI: 10.1111/1468-0297.0j677

Authors: Ronald Bosman, Frans Van Winden

Institutions: Vrije Universiteit Amsterdam, University of Amsterdam, Ifo Institute for Economic Research

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2109728169

FWCI: 37.7

Cites: 47

Cited by: 376

Related to: 10