Working Paper
Frustration and Anger in Games
Pierpaolo Battigalli, Martin Dufwenberg, Alec Smith
CESifo, Munich, 2015
CESifo Working Paper No. 5258
CESifo, Munich, 2015
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.
CESifo Category
Behavioural Economics
Behavioural Economics
Keywords: frustration, anger, blame, belief-dependent preferences, psychological games
JEL Classification: C720, D030