Abstract
Apology is a social institution used to restore frayed relationships. It is relevant in daily interactions but also in medical malpractice, political reputation, corporate culture, etc. The theory presented shows that in a general class of moral hazard games with imperfect information about agents with two-dimensional type, the act of apology exhibits regular properties - e.g. apologies are more frequent in long relationships, early in relationships, and between better matched partners. A variant of the trust game demonstrates that communication matters in a manner consistent with theory; specifically, the words I am sorry appear to select equilibrium behavior consistent with each of the theory's main predictions.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
