The Economics of Spite

What are the motives behind spite? Why are individuals willing to take on large costs in order to exact “revenge” on other? Is spite unique to humans? In an episode of the Freakonomics radio show called Spite Happens, an economics approach is used to explain spite and takes a look at the trade-offs behind the spite mentality. Warning! The beginning of this show contains a graphic example that includes sexual violence. If you’d wish to skip this, jump to 4:12. Imagine an experiment where individuals sit down in front of computers and are randomly paired up with another player. The players do not know each other Continue reading The Economics of Spite