Regret, Warm-Glow and Bounded Rationality in Experiments on Binary Public Goods

Tomás, J. and F. Pérez-Marti
Journal of Economic Behavior & Organization – 55.3 (2004). 343-353.

Keywords: Binary public goodsBayesian equilibriumRegret theoryWarm-glowBounded rationality

Abstract: This paper presents two models to explain experimental data on binary public goods. While a Regret model and a Warm-glow model both fit the data better than the standard Bayesian model, the Warm-glow model fits best.