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How do informal norms affect rule compliance: Experimental evidence

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  • Govindan, Pavitra

Abstract

I use a dictator game experiment to show that an individual’s compliance with an egalitarian formal rule depends on his/her group’s informal norms. A group of dictators communicate with each other to decide the “guideline” for the amount of money to send to their matched recipients. This guideline functions as the group’s informal norm and significantly affects the sending behavior of dictators despite being non-binding. Next, an egalitarian formal rule is introduced that requires dictators to send at least half of their money to a matched recipient. Dictators are less likely to obey the egalitarian rule if they are in groups with more selfish norms.

Suggested Citation

  • Govindan, Pavitra, 2022. "How do informal norms affect rule compliance: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
  • Handle: RePEc:eee:soceco:v:96:y:2022:i:c:s221480432100135x
    DOI: 10.1016/j.socec.2021.101795
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    More about this item

    Keywords

    Social norm; Formal rule; Rule compliance; Dictator game; Pre-play communication; Lab experiment;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • K0 - Law and Economics - - General

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