CeDEx workshop - Brit Grosskopf (University of Exeter)

The Demand for Expressing (Emotions)

(joint with Kristian Lopez-Vargas)

Abstract:

Economists have studied communication mainly for its instrumental purpose, that is, for how it affects play and outcomes in an interaction.  We focus on the non-instrumental aspect of communication. In particular, we study the material value and purpose of ex-post verbal expression and its impact on subjective well-being in a modified Power-to-Take game, where previous research suggests expression is likely to be driven by emotions. Our main findings show that people attach a non-negligible monetary valuation to such expressions possibilities and, that purely expressive as well as reciprocal motives are both significant components of this valuation. We also find that the anticipation of such expressions induces more pro-social taking behavior. We document that stronger mood and emotional reactions are associated with higher valuations for expression. Our research further indicates that incorporating expression possibilities in economic interactions can have an important impact on subjective well-being via other psychological mechanisms besides those instrumental and informational channels normally studied in cheap talk.