Over My Dead Body: Bargaining and the Price of Dignity

Bénabou, Roland; Tirole, Jean

doi:10.1257/aer.99.2.459

Cited by 69 publications

(40 citation statements)

References 21 publications

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“…2 g maximizes overall social welfare in (17), taking as given the groupsí reference utilities fR i 2 (b)g, and taking into account how the policy a §ects equilibrium participation in current riots. 13 We assume throughout the remainder of this section that the government objective function (17) is concave. This requires additional restrictions, besides concavity of V i t .…”

Section: The General Frameworkmentioning

confidence: 99%

Emotions and Political Unrest

Passarelli

Tabellini

2017

Journal of Political Economy

144

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How does political unrest ináuence public policy? We assume that protests are an emotional reaction to unfair treatment. Individuals have a consistent view of fairness, that internalizes government constraints. Individuals accept lower welfare if the government is more constrained. This resignation e §ect induces a benevolent government to delay unpleasant choices and accumulate public debt, to mitigate social unrest. More radical and homogenous groups are more prone to unrest, and hence more ináuential. Even if the government is benevolent and all groups are identical in their propensity to riot, equilibrium policy can be distorted. The evidence is consistent with these implications.! We thank

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Section: The General Frameworkmentioning

confidence: 99%

Emotions and Political Unrest

Passarelli

Tabellini

2017

Journal of Political Economy

144

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“…Åstebro et al () invoke Adam Smith's “presumptuous hope of success” (p. 57). This creates incentives to move from distorted beliefs to distorted actions that might increase well‐being, as hope about one's future may generate anticipatory utility; people like to think positively about themselves and the personal situations they might encounter (Bénabou & Tirole, ). Individuals may care “more about feeling smart than about reality” (Köszegi, , p. 673).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

Can beneficial antecedents to self‐employment be detrimental to entrepreneurial performance?

Hopp

Martin

2018

Manage Decis Econ

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We hypothesize that risk aversion, plasticity, stability, and locus of control have different effects on a person's decision to enter entrepreneurship and the person's entrepreneurial performance. Empirical results reveal that plasticity and risk tolerance have positive effects on selection but negative effects on income derived in entrepreneurship. Stability, on the other hand, deters entry but has an inversely u‐shaped relation with income. Locus of control has a positive impact on the decision but an insignificant effect on entrepreneurial income. These new insights may guide policy makers on how to help aspiring entrepreneurs overcome the negative effects of their personality traits.

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“…Even in the literature that incorporates unawareness, agents are assumed to be aware that they are unaware of something (Filiz-Ozbay, 2008;Ozbay, 2006;Heifetz et al, 2009;von Thadden and Zhao, 2009). In the cognitive thinking literature, agents know that there are some foreseeable events but cannot foresee these events without making this cognitive effort (Tirole, 2009). Similarly, the literature on willpower assumes that agents can blindly impose certain wrong beliefs while making decisions even though they fully understand that this belief is completely wrong and not justifiable (Benabou and Tirole, 2009).…”

Section: Public Quantal Responsementioning

confidence: 99%

“…In the cognitive thinking literature, agents know that there are some foreseeable events but cannot foresee these events without making this cognitive effort (Tirole, 2009). Similarly, the literature on willpower assumes that agents can blindly impose certain wrong beliefs while making decisions even though they fully understand that this belief is completely wrong and not justifiable (Benabou and Tirole, 2009). All of the aforementioned research streams allow for some sophistication despite the accommodation of behavioral issues and bounded rationality.…”

Section: Public Quantal Responsementioning

confidence: 99%

Intertemporal pricing with boundedly rational consumers

Cai

Chen

2011

J Revenue Pricing Manag

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Flexible pricing plans are commonly observed in service industries. In this article, we argue that the presence of flexible pricing plans can be attributed to consumers being boundedly rational -these consumers do not always select the best available option; rather, they select better options more often. In our model, the seller faces consumers who are heterogeneous in their degrees of intertemporal inconsistencytheir ultimate actions can be different from their intended actions. We show that, in response to these boundedly rational consumers the seller may be able to extract more profit by setting different prices in different periods and allowing the consumers to self-select which period to pay. Moreover, a single pricing plan may emerge as an optimal pricing scheme even when the consumers are heterogeneous in their degrees of rationality and the seller is not fully aware of the consumers' types. We further show that the pricing patterns depend primarily on the relative discounting factor between the seller and the consumers.

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Over My Dead Body: Bargaining and the Price of Dignity

Cited by 69 publications

References 21 publications

Emotions and Political Unrest

Emotions and Political Unrest

Can beneficial antecedents to self‐employment be detrimental to entrepreneurial performance?

Intertemporal pricing with boundedly rational consumers

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