Games Parents and Adolescents Play: Risky Behaviors, Parental Reputation, and Strategic Transfers.

Published

Journal Article

This paper examines parental reputation formation in intra-familial interactions. In a repeated two-stage game, children decide whether to drop out of high school or daughters decide whether to have births as teens and parents then decide whether to provide support to their children beyond age 18. Drawing on Milgrom and Roberts (1982) and Kreps and Wilson (1982), we show that, under certain conditions, parents have the incentive to penalize older children for their adolescent risk-taking behaviours in order to dissuade their younger children from such behaviours when reaching adolescence. We find evidence in favour of this parental reputation model.

Full Text

Duke Authors

Cited Authors

  • Hao, L; Hotz, VJ; Jin, GZ

Published Date

  • April 2008

Published In

Volume / Issue

  • 118 / 528

Start / End Page

  • 515 - 555

PubMed ID

  • 21660221

Pubmed Central ID

  • 21660221

Electronic International Standard Serial Number (EISSN)

  • 1468-0297

International Standard Serial Number (ISSN)

  • 0013-0133

Digital Object Identifier (DOI)

  • 10.1111/j.1468-0297.2008.02132.x

Language

  • eng