IDEAS home Printed from https://ideas.repec.org/a/kap/ejlwec/v37y2014i3p381-392.html
   My bibliography  Save this article

A note on social drinking: In Vino Veritas

Author

Listed:
  • Justus Haucap
  • Annika Herr

Abstract

It has been a persistent phenomenon in many societies that a large proportion of alcohol consumption takes place in company of other people. While the phenomenon of social or public drinking is well discussed in disciplines such as social psychology and anthropology, economists have paid little attention to the social environment of alcohol consumption. This paper tries to close this gap and explains social drinking as a trust facilitating device. Since alcohol consumption tends to make some people (unwillingly) tell the truth, social drinking can eventually serve as a signaling device in social contact games. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Justus Haucap & Annika Herr, 2014. "A note on social drinking: In Vino Veritas," European Journal of Law and Economics, Springer, vol. 37(3), pages 381-392, June.
  • Handle: RePEc:kap:ejlwec:v:37:y:2014:i:3:p:381-392
    DOI: 10.1007/s10657-013-9412-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10657-013-9412-1
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s10657-013-9412-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jeremy W. Bray, 2005. "Alcohol Use, Human Capital, and Wages," Journal of Labor Economics, University of Chicago Press, vol. 23(2), pages 279-312, April.
    2. van Ours, Jan C., 2002. "A pint a day raises a man's pay; but smoking blows that gain away," IZA Discussion Papers 473, Institute of Labor Economics (IZA).
    3. Edvard Johansson & Hannu Alho & Urpo Kiiskinen & Kari Poikolainen, 2007. "The association of alcohol dependency with employment probability: evidence from the population survey ‘Health 2000 in Finland’," Health Economics, John Wiley & Sons, Ltd., vol. 16(7), pages 739-754, July.
    4. repec:zbw:rwirep:0158 is not listed on IDEAS
    5. Becker, Gary S, 1991. "A Note on Restaurant Pricing and Other Examples of Social Influences on Price," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 1109-1116, October.
    6. Masayo Sato & Yasushi Ohkusa, 2003. "An Empirical Study of Alcoholic Consumption and Labor Productivity in Japan," ISER Discussion Paper 0581, Institute of Social and Economic Research, Osaka University.
    7. Erdal Tekin, 2004. "Employment, Wages, and Alcohol Consumption in Russia," Southern Economic Journal, John Wiley & Sons, vol. 71(2), pages 397-417, October.
    8. Heufer, Jan, 2009. "In Vino Veritas: The Economics of Drinking," Ruhr Economic Papers 158, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    10. Nicolas Ziebarth & Markus Grabka, 2009. "In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages," Journal of Labor Research, Springer, vol. 30(3), pages 219-244, September.
    11. Paolo Buonanno & Paolo Vanin, 2013. "Bowling alone, drinking together," Empirical Economics, Springer, vol. 44(3), pages 1635-1672, June.
    12. Alison Snow Jones & David W. Richmond, 2006. "Causal effects of alcoholism on earnings: estimates from the NLSY," Health Economics, John Wiley & Sons, Ltd., vol. 15(8), pages 849-871, August.
    13. Ziggy MacDonald & Michael A. Shields, 2004. "Does problem drinking affect employment? Evidence from England," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 139-155, February.
    14. Pesendorfer, Wolfgang, 1995. "Design Innovation and Fashion Cycles," American Economic Review, American Economic Association, vol. 85(4), pages 771-792, September.
    15. Paul Ormerod & Greg Wiltshire, 2009. "‘Binge’ drinking in the UK: a social network phenomenon," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 8(2), pages 135-152, December.
    16. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    17. Björn Frank & Justus Haucap & Annika Herr, 2014. "Social Drinking Versus Administering Alcohol," Economic Inquiry, Western Economic Association International, vol. 52(3), pages 1245-1247, July.
    18. Ziggy Macdonald & Michael A. Shields, 2001. "The Impact of Alcohol Consumption on Occupational Attainment in England," Economica, London School of Economics and Political Science, vol. 68(271), pages 427-453, August.
    19. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September.
    20. Bethany L. Peters & Edward Stringham, 2006. "No Booze? You May Lose: Why Drinkers Earn More Money Than Nondrinkers," Journal of Labor Research, Transaction Publishers, vol. 27(3), pages 411-421, June.
    21. MacDonald, Ziggy & Shields, Michael A, 2001. "The Impact of Alcohol Consumption on Occupational Attainment in England," Economica, London School of Economics and Political Science, vol. 68(271), pages 427-453, August.
    22. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    23. Michael French & Johanna Catherine Maclean & Jody Sindelar & Hai Fang, 2011. "The morning after: alcohol misuse and employment problems," Applied Economics, Taylor & Francis Journals, vol. 43(21), pages 2705-2720.
    24. Bagwell, Laurie Simon & Bernheim, B Douglas, 1996. "Veblen Effects in a Theory of Conspicuous Consumption," American Economic Review, American Economic Association, vol. 86(3), pages 349-373, June.
    25. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    26. M. Christopher Auld, 2005. "Smoking, Drinking, and Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jie Dong & Qiran Zhao & Yanjun Ren, 2022. "Dark Side or Bright Side: The Impact of Alcohol Drinking on the Trust of Chinese Rural Residents," IJERPH, MDPI, vol. 19(10), pages 1-15, May.
    2. Klajdi Bregu & Cary Deck & Lindsay Ham & Salar Jahedi, 2017. "The Effects of Alcohol Use on Economic Decision Making," Southern Economic Journal, John Wiley & Sons, vol. 83(4), pages 886-902, April.
    3. Daniel Houser & Jianxin Wang, 2021. "Business Drinking: Evidence from A Lab-in-the-Field Experiment," Working Papers 1074, George Mason University, Interdisciplinary Center for Economic Science.
    4. Au, Pak Hung & Zhang, Jipeng, 2016. "Deal or no deal? The effect of alcohol drinking on bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 70-86.
    5. Adams, Scott J. & Heywood, John S. & Ullman, Darin F. & Venkatesh, Shrathinth, 2022. "Social jobs and the returns to drinking," Economics & Human Biology, Elsevier, vol. 46(C).
    6. Wang, Jianxin & Huang, Cailing & Xu, Lin & Zhang, Junhuan, 2023. "Drinking into friends: Alcohol drinking culture and CEO social connections," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 982-995.
    7. Patrick Keller, 2016. "Alcohol: Does It Make You Successful? A Longitudinal Analysis," SOEPpapers on Multidisciplinary Panel Data Research 830, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Au, Pak Hung & Lim, Wooyoung & Zhang, Jipeng, 2022. "In vino veritas? Communication under the influence—An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 197(C), pages 325-340.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicolas Ziebarth & Markus Grabka, 2009. "In Vino Pecunia? The Association Between Beverage-Specific Drinking Behavior and Wages," Journal of Labor Research, Springer, vol. 30(3), pages 219-244, September.
    2. Maryam Dilmaghani, 2022. "The link between smoking, drinking and wages: Health, workplace social capital or discrimination?," Industrial Relations Journal, Wiley Blackwell, vol. 53(2), pages 160-183, March.
    3. Marco Caliendo & Juliane Hennecke, 2022. "Drinking is different! Examining the role of locus of control for alcohol consumption," Empirical Economics, Springer, vol. 63(5), pages 2785-2815, November.
    4. Michael T. French & Ioana Popovici, 2011. "That instrument is lousy! In search of agreement when using instrumental variables estimation in substance use research," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 127-146, February.
    5. Pinka Chatterji & Jeffrey DeSimone, 2006. "High School Alcohol Use and Young Adult Labor Market Outcomes," NBER Working Papers 12529, National Bureau of Economic Research, Inc.
    6. Jenny Lye & Joe Hirschberg, 2010. "Alcohol Consumption And Human Capital: A Retrospective Study Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 309-338, April.
    7. Vasilios Kosteas, 2012. "The Effect of Exercise on Earnings: Evidence from the NLSY," Journal of Labor Research, Springer, vol. 33(2), pages 225-250, June.
    8. Masanori Kuroki, 2017. "Does Drinking in Moderation Lead to Higher Life Satisfaction?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 12(1), pages 125-135, March.
    9. Daiji Kawaguchi & Jungmin Lee & Ming‐Jen Lin & Izumi Yokoyama, 2023. "Is Asian flushing syndrome a disadvantage in the labor market?," Health Economics, John Wiley & Sons, Ltd., vol. 32(7), pages 1478-1503, July.
    10. Au, Pak Hung & Zhang, Jipeng, 2016. "Deal or no deal? The effect of alcohol drinking on bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 70-86.
    11. Cowan, Benjamin W., 2011. "Forward-thinking teens: The effects of college costs on adolescent risky behavior," Economics of Education Review, Elsevier, vol. 30(5), pages 813-825, October.
    12. Chatterji, Pinka & Alegria, Margarita & Takeuchi, David, 2011. "Psychiatric disorders and labor market outcomes: Evidence from the National Comorbidity Survey-Replication," Journal of Health Economics, Elsevier, vol. 30(5), pages 858-868.
    13. Adams, Scott J. & Heywood, John S. & Ullman, Darin F. & Venkatesh, Shrathinth, 2022. "Social jobs and the returns to drinking," Economics & Human Biology, Elsevier, vol. 46(C).
    14. Sabia, Joseph J. & Nguyen, Thanh Tam, 2016. "The Effect of Medical Marijuana Laws on Labor Market Outcomes," IZA Discussion Papers 9831, Institute of Labor Economics (IZA).
    15. Wang, Jianxin & Huang, Cailing & Xu, Lin & Zhang, Junhuan, 2023. "Drinking into friends: Alcohol drinking culture and CEO social connections," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 982-995.
    16. Petri Böckerman & Ari Hyytinen & Terhi Maczulskij, 2017. "Alcohol Consumption and Long‐Term Labor Market Outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 275-291, March.
    17. John Cawley & Johanna Catherine Maclean, 2012. "Unfit For Service: The Implications Of Rising Obesity For Us Military Recruitment," Health Economics, John Wiley & Sons, Ltd., vol. 21(11), pages 1348-1366, November.
    18. Heineck, Guido & Schwarze, Johannes, 2003. "Substance Use and Earnings: The Case of Smokers in Germany," IZA Discussion Papers 743, Institute of Labor Economics (IZA).
    19. Preety Srivastava, 2010. "Does Bingeing Affect Earnings?," The Economic Record, The Economic Society of Australia, vol. 86(275), pages 578-595, December.
    20. Böckerman, Petri & Hyytinen, Ari & Kaprio, Jaakko & Maczulskij, Terhi, 2018. "If you drink, don't smoke: Joint associations between risky health behaviors and labor market outcomes," Social Science & Medicine, Elsevier, vol. 207(C), pages 55-63.

    More about this item

    Keywords

    Public drinking; Alcohol consumption; Social contact games; Trust; Alcohol-wage-puzzle; Alcohol-income-puzzle; C72; D71; L14;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:ejlwec:v:37:y:2014:i:3:p:381-392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.