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Battigalli, Pierpaolo; Dufwenberg, Martin; Smith, Alexander Charles (Virginia Tech, 2015-08-24)
Frustration, anger, and aggression have important consequences for economic and social behavior, concerning for example monopoly pricing, contracting, bargaining, traffic safety, 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 economic settings.