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- Title
Over My Dead Body: Bargaining and the Price of Dignity.
- Authors
Bénabou, Roland; Tirole, Jean
- Abstract
The article focuses on the effect of anticipatory or self-esteem concerns can result in the inefficient breakdown of Coasian bargaining under symmetric information. It focuses on the effect that belief distortions created endogenously by dignity, pride, or wishful thinking can have on future outcomes. It examines the political economy of reforms, such as liberalizing the labor market or opening to trade. It utilizes a Nash demand game to simulate the bargaining process. It mentions that while positive implications of individual belief management are similar whether they arise from instrumental or hedonic motives, normative conclusions depend critically on this distinction.
- Subjects
SELF-esteem; COLLECTIVE bargaining; DIGNITY; NASH equilibrium; PRIDE &; vanity; REFORMS
- Publication
American Economic Review, 2009, Vol 99, Issue 2, p459
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.99.2.459