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A note on sibling rivalry and good-kid, bad-kid equilibria

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  • Dennis Weisman

Abstract

When parents with concave utility reward good behaviour on the part of their children with a share of the marginal utility they derive from good behaviour, a decrease in good behaviour by kid i causes kid j to increase the amount of good behaviour he/she supplies in equilibrium. This may explain why simultaneous good-kid behaviour is rare and also why children try to get their siblings into trouble.

Suggested Citation

  • Dennis Weisman, 2011. "A note on sibling rivalry and good-kid, bad-kid equilibria," Applied Economics Letters, Taylor & Francis Journals, vol. 18(16), pages 1559-1563.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:16:p:1559-1563
    DOI: 10.1080/13504851.2010.548779
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    References listed on IDEAS

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    4. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 151-182, July.
    5. Yang-Ming Chang & Dennis L. Weisman, 2005. "Sibling Rivalry and Strategic Parental Transfers," Southern Economic Journal, John Wiley & Sons, vol. 71(4), pages 821-836, April.
    6. Bengt Holmstrom, 1979. "Moral Hazard and Observability," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 74-91, Spring.
    7. HOLMSTROM, Bengt, 1979. "Moral hazard and observability," LIDAM Reprints CORE 379, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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