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Modeling sacrifice

Author

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  • Jang, Dooseok
  • Sohn, Jin-yeong

Abstract

Recent evidence suggests that a person’s reciprocity toward others depends on the amount of sacrifice made by others. We develop a reciprocity model that incorporates the concept of sacrifice, defined as the payoff forgone when choosing an action. Our model retains many desirable properties of the existing reciprocity models, while capturing the nuanced psychology of reciprocity. In our model, one’s motivation to reciprocate increases in the size of others’ sacrifice. In two-person games, it can be shown that our model strengthens reciprocity motivation in reciprocity equilibria that are not Nash equilibria under selfish preferences.

Suggested Citation

  • Jang, Dooseok & Sohn, Jin-yeong, 2024. "Modeling sacrifice," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 323-337.
    • Handle: RePEc:eee:jeborg:v:224:y:2024:i:c:p:323-337
    DOI: 10.1016/j.jebo.2024.06.006
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    References listed on IDEAS

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    More about this item

    Keywords

    Sacrifice; Reciprocity; Psychological games; Social preferences;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H40 - Public Economics - - Publicly Provided Goods - - - General

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