539. Frustration and Anger in Games
by Pierpaolo Battigalli, Martin Dufwenberg, Alec Smith
Frustration, anger, and blame have important consequences for economic and social behavior, concerning for example monopoly pricing, contracting, bargaining, 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 strategic settings.
KEYWORDS: frustration, anger, blame, belief-dependent preferences, psychological games.
JEL codes: C72, D01, D91