Assistant Professor Wei Mengxing: Classical and Belief-Based Gift Exchange Models: Theory and Evidence

(Correspondent: Zhong Yiming) Lately, Assistant Professor Wei Mengxing has had a cooperation paper as corresponding author published in Games and Economic Behavior (GEB). The paper is titled “Classical and Belief-Based Gift Exchange Models: Theory and Evidence”.

This paper considered three models of gift exchange, the classical (CGE), the augmented (AGE) and the belief-based (BGE), and found that only the BGE model is based on psychological game theory and it explicitly uses belief hierarchies (beliefs and beliefs about beliefs). First order (but not second order) beliefs enter the AGE model through the workers’ expectations of the wage rate. Second order (but not first order) beliefs enter the BGE model through guilt aversion.

Games and Economic Behavior (GEB) is a general-interest journal devoted to the advancement of game theory and its applications. It is recognized as a top journal in theoretical economics by universities and research institutions in China, as well as one of the A-level foreign academic journals by School of Economics.