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Law and Literature: Theory and Evidence on Empathy and Guile

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  • Chen Daniel L.

    (Toulouse School of Economics, Institute for Advanced Study in Toulouse, University of Toulouse Capitole, Toulouse, France)

Abstract

Legal theorists have suggested that literature stimulates empathy and affects moral judgment and decision-making. I present a model to formalize the potential effects of empathy on third parties. Empathy is modeled as having two components–sympathy (the decision-maker’s reference point about what the third party deserves) and emotional theory of mind (anticipating the emotions of another in reaction to certain actions). I study the causal effect with a data entry experiment. Workers enter text whose content is randomized to relate to empathy, guile, or a control. Workers then take the Reading the Mind in the Eyes Test (RMET) and participate in a simple economic game. On average, workers exposed to empathy become less deceptive towards third parties. The result is stronger when workers are nearly indifferent. These results are robust to a variety of controls and model specifications.

Suggested Citation

  • Chen Daniel L., 2019. "Law and Literature: Theory and Evidence on Empathy and Guile," Review of Law & Economics, De Gruyter, vol. 15(1), pages 1-33, March.
    • Handle: RePEc:bpj:rlecon:v:15:y:2019:i:1:p:33:n:3
    DOI: 10.1515/rle-2015-0048
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    References listed on IDEAS

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    More about this item

    Keywords

    normative commitments; other-regarding preferences; empathy; deception; guile;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • K00 - Law and Economics - - General - - - General (including Data Sources and Description)

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