Investigating shame and selfishness in two-stage choice problems with interdependent alternatives
Keywords:
Two-stage choice problem, Sequential decision-making, Utility theory, Altruism, Selfishness, Shame, Subjective norm, Dictator gameAbstract
Decision makers often have to reason about the fairness of their choices, especially when many partners are involved. This situation has urged the use of preferences that could encode the notions of fairness and altruism. There are instances of problems that suggest that the partners of the decision maker have interdependent preferences over the possible alternatives and that they might influence each other. In this paper, we investigate payoffs between the decision maker and passive recipients on second-stage choice problems. We provide a canonical example with dependent and independent alternatives and show how it affects the fairness and private payoffs of the decision maker.
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