New article in The Review of Economic Studies
New article by Alexander Christopher Sebald and Charles Bellemare in The Review of Economic Studies, "Measuring Belief-dependent Preferences without Data on Beliefs".
The authors derive bounds on the causal effect of belief-dependent preferences (reciprocity and guilt aversion) on choices in sequential two-player games without data on the (higher-order) beliefs of players. The article shows how informative bounds can be derived by exploiting a specific invariance property common to those preferences. The approach is illustrated by analysing data from an experiment conducted in Denmark.