
handle: 10419/150166
We study a two-stage choice problem, where alternatives are allocations between the decision maker (DM) and a passive recipient. The recipient observes choice behavior in stage two, while stage one choice is unobserved. Choosing selfishly in stage two, in the face of a fairer available alternative, may inflict shame on DM. DM has preferences over sets of alternatives that represent period two choices. We axiomatize a representation that identifies DM's selfish ranking, her norm of fairness and shame. Altruism is the most prominent motive that can explain non-selfish choice. We identify a condition under which shame to be selfish can mimic altruism, when only stage-two choice is observed by the experimenter. An additional condition implies that the norm of fairness can be characterized as the Nash solution of a bargaining game induced by the second-stage choice problem. The representation is generalized to allow for finitely many recipients and applied to a simple strategic situation, a game of trust.
ddc:330, subjective norm, Shame, D81, dictator game, D80, Shame, selfishness, subjective norm, dictator game, Nash bargaining solution, Nash bargaining solution, selfishness, D63, D64, selfishness, fairness, shame, altruism, C78, jel: jel:D80, jel: jel:D81, jel: jel:D63, jel: jel:C78, jel: jel:D78, jel: jel:D64
ddc:330, subjective norm, Shame, D81, dictator game, D80, Shame, selfishness, subjective norm, dictator game, Nash bargaining solution, Nash bargaining solution, selfishness, D63, D64, selfishness, fairness, shame, altruism, C78, jel: jel:D80, jel: jel:D81, jel: jel:D63, jel: jel:C78, jel: jel:D78, jel: jel:D64
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