The Importance of Peers for Compliance with Norms of Fair Sharing

55 Pages Posted: 11 Jan 2016

See all articles by Simon Gaechter

Simon Gaechter

University of Nottingham; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Leonie Gerhards

University of Hamburg - Department of Economics

Daniele Nosenzo

University of Nottingham

Multiple version iconThere are 2 versions of this paper

Abstract

A burgeoning literature in economics has started examining the role of social norms in explaining economic behavior. Surprisingly, the vast majority of this literature has studied social norms in asocial decision settings, where individuals are observed to act in isolation from each other. In this paper we use a large-scale dictator game experiment (N = 850) to show that the presence of "peers" in the decision setting faced by an individual can have a profound influence on the individual's perception of the decision situation and its underlying norms of sharing, as elicited in an incentive compatible way. However, we find limited evidence that this influence of peers in normative considerations translates into a corresponding effect in actual behavior. Partly, this is due to substantial heterogeneity in the extent to which dictators in our sample are willing to comply with norms of fair sharing.

Keywords: social norms, norm compliance, peer effects, fair sharing, dictator game, framing, experiments

JEL Classification: A13, C92, D03

Suggested Citation

Gachter, Simon and Gerhards, Leonie and Nosenzo, Daniele, The Importance of Peers for Compliance with Norms of Fair Sharing. IZA Discussion Paper No. 9615. Available at SSRN: https://ssrn.com/abstract=2713036

Simon Gachter (Contact Author)

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Leonie Gerhards

University of Hamburg - Department of Economics ( email )

Von-Melle-Park 5
room 2060
Hamburg, 20146
Germany

Daniele Nosenzo

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
33
Abstract Views
318
PlumX Metrics