Social Preferences and Deliberately Stochastic Behavior

35 Pages Posted: 14 Nov 2021 Last revised: 17 Oct 2023

See all articles by Yosuke Hashidate

Yosuke Hashidate

Japan Society for the Promotion of Science; Boston University

Keisuke Yoshihara

Gunma University - Center for Mathematics and Data Science

Date Written: October 15, 2023

Abstract

We propose a tractable stochastic choice model to identify motivations for prosocial behavior. We employ an additively perturbed utility model consisting of the sum of expected utility and a nonlinear cost function, where the utility function is purely selfish while the cost function depends on social preferences. We study stochastic choice patterns to distinguish between stochastic inequity-averse behavior and stochastic shame-mitigating or impurely altruistic behavior. Moreover, we discuss how our model can complement recent experimental evidence of choices between lotteries of allocations. Finally, we provide an axiomatic characterization of the model.

Keywords: Preference for Randomization; Perturbed Utility; Personal Norms; Impure Altruism; Efficiency; Fairness.

JEL Classification: D63; D64; D81.

Suggested Citation

Hashidate, Yosuke and Yoshihara, Keisuke, Social Preferences and Deliberately Stochastic Behavior (October 15, 2023). Available at SSRN: https://ssrn.com/abstract=3962263 or http://dx.doi.org/10.2139/ssrn.3962263

Yosuke Hashidate (Contact Author)

Japan Society for the Promotion of Science ( email )

Boston University ( email )

270 Bay State Road
Boston, MA 02215
United States

Keisuke Yoshihara

Gunma University - Center for Mathematics and Data Science

4-2 Aramakimachi
Maebashi, Gunma 371-8510
Japan

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