Preference Based Subjective Beliefs
CEIS, University of Rome Tor Vergata, 00133 Roma, Italy
Departamento de Fundamentos del Análisis Económico, Universidad de Alicante, 03071 Alicante, Spain
Department of Economics, The University of Chicago, Chicago, IL 60637, USA
Dipartimento di Economia e Finanza, LUISS Guido Carli Roma, 00197 Roma, Italy
Author to whom correspondence should be addressed.
Received: 22 May 2018 / Revised: 26 June 2018 / Accepted: 5 July 2018 / Published: 16 July 2018
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We test the empirical content of the assumption of preference dependent beliefs
using a behavioral model of strategic decision making in which the rankings of individuals over final outcomes in simple games influence their beliefs over the opponent’s behavior. This approach— by analogy with Psychological Game Theory—allows for interdependence between preferences and beliefs but reverses the order of causality. We use existing evidence from a multi-stage experiment in which we first elicit distributional preferences in a Random Dictator Game, then estimate beliefs in a related
effort game conditional on these preferences. Our structural estimations confirm our working hypothesis on how social preferences shape beliefs: subjects with higher guilt (envy) expect others to put less (more) effort, which reduces the expected difference in payoffs.
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MDPI and ACS Style
Giaccherini, M.; Ponti, G. Preference Based Subjective Beliefs. Games 2018, 9, 50.
Giaccherini M, Ponti G. Preference Based Subjective Beliefs. Games. 2018; 9(3):50.
Giaccherini, Matilde; Ponti, Giovanni. 2018. "Preference Based Subjective Beliefs." Games 9, no. 3: 50.
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