“…Any individual who is sufficiently averse to this discomfort may therefore refrain from taking the action in the first place. Guilt aversion is able to explain a vast array of behaviors, including cooperation (Miettinen and Suetens, 2008), altruism (Andreoni and Rao, 2011), conformism (Khalmetski, 2015), group favoritism (Güth et al, 2009) and reciprocity (Chang et al, 2011), and economic experiments indicate that it is indeed an important determinant in a variety of different situations (Ketelaar and Au, 2003;Charness and Dufwenberg, 2006;Hopfensitz and Reuben, 2009;Geng et al, 2011;Battigalli et al, 2013). More recently, guilt averse behavior has also made its way into macroeconomic modeling.…”