Journal of Economic Literature Vol. 60 No. 3 2022

Belief-Dependent Motivations and Psychological Game Theory

Pierpaolo Battigalli¹; Martin Dufwenberg²

¹ Bocconi University and IGIER , Italy · ² University of Arizona; University of Gothenburg, Sweden; CESifo, Germany.

Abstract

The mathematical framework of psychological game theory is useful for describing many forms of motivation where preferences depend directly on one’s own or others’ beliefs. It allows for incorporating, for example, emotions, reciprocity, image concerns, and self-esteem in economic analysis. We explain how and why, discussing basic theory, experiments, applied work, and methodology.

DOI

10.1257/jel.20201378

Volume

60

Issue

3

Pages

833-882

Language

en

Sources

openalex crossref

Cite

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