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The limits of guilt
Loukas Balafoutas - Personal Name
Helena Fornwagner1 - Personal Name
cost whenever they fall short of other people’s expectations. In this paper, we
suggest that there may be limits to this kind of motivation. We present evidence
from an experimental dictator game showing that behavior is consistent with guilt
aversion for relatively low levels of recipient expectations, roughly up to the point
where the recipient expects half of the available surplus. Beyond that point the
relationship between expectations and transfers becomes negative. Moreover, we
examine this relationship at the individual level and establish a typology of subjects
depending on how and whether they condition their behavior on recipient
expectations
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