Battigalli, Pierpaolo Dufwenberg, Martin Smith, Alec
Year of Publication:
CESifo Working Paper No. 5258
Frustration, anger, and aggression have important consequences for economic and social behavior, concerning for example monopoly pricing, contracting, bargaining, traffic safety, violence, and politics. Drawing on insights from psychology, we develop a formal approach to exploring how frustration and anger, via blame and aggression, shape interaction and outcomes in economic settings.
frustration anger blame belief-dependent preferences psychological games