The Importance of Peers for Compliance with Norms of Fair Sharing

35 Pages Posted: 20 Jun 2017

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

Date Written: May 30, 2017

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 “peers” can have a profound influence on individuals’ perceptions of norms of fair sharing, which we elicit in an incentive compatible way. However, in contrast to these strong peer effects in social norms of fair sharing, we find limited evidence of the influence of norms and peers on actual sharing behavior. We discuss how these results can be explained by heterogeneity in normative views as well as in willingness to comply with norms.

Keywords: Social Norms, Norm Compliance, Peer Effects, Fair Sharing, Dictator Game, Framing, Experiments

JEL Classification: A130, C920, D030

Suggested Citation

Gachter, Simon and Gerhards, Leonie and Nosenzo, Daniele, The Importance of Peers for Compliance with Norms of Fair Sharing (May 30, 2017). CESifo Working Paper Series No. 6497. Available at SSRN: https://ssrn.com/abstract=2989514

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

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