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The Formation of Social Preferences: Some Lessons from Psychology and Biology

In: Handbook of the Economics of Giving, Altruism and Reciprocity

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  • Levy-Garboua, Louis
  • Meidinger, Claude
  • Rapoport, Benoit

Abstract

The goal of this paper is to draw some lessons for economic theory from research in psychology, social psychology and, more briefly, in biology, which purports to explain the "formation" of social preferences. We elicit the basic mechanisms whereby a variety of social preferences are determined in a variety of social contexts. Biological mechanisms, cultural transmission, learning, and the formation of cognitive and emotional capacities shape social preferences in the long or very long run. In the short run, the built-in capacities are utilized by individuals to construct their own context-dependent social preferences. The full development of social preferences requires consciousness of the individual's similarities and differences with others, and therefore knowledge of self and others. A wide variety of context-dependent social preferences can be generated by just three cognitive processes: identification of self with known others, projection of known self onto partially unknown others, and categorization of others by similarity with self. The self can project onto similar others but is unable to do so onto dissimilar others. The more can the self identify with, or project onto, an other the more generous she will be. Thus the self will find it easier to internalize and predict the behavior of an in-group than an out-group and will generally like to interact more with the former than with the latter. The main social motivations can be simply organized by reference to social norms of justice or fairness that lead to reciprocal behavior, some kind of self-anchored altruism that provokes in-group favoritism, and social drives which determine an immediate emotional response to an experienced event like hurting a norm's violator or helping an other in need.

Suggested Citation

  • Levy-Garboua, Louis & Meidinger, Claude & Rapoport, Benoit, 2006. "The Formation of Social Preferences: Some Lessons from Psychology and Biology," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 7, pages 545-613, Elsevier.
  • Handle: RePEc:eee:givchp:1-07
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    Cited by:

    1. Lévy-Garboua, Louis & Masclet, David & Montmarquette, Claude, 2009. "A behavioral Laffer curve: Emergence of a social norm of fairness in a real effort experiment," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 147-161, April.
    2. Ben-Ner, Avner & List, John A. & Putterman, Louis & Samek, Anya, 2017. "Learned generosity? An artefactual field experiment with parents and their children," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 28-44.
    3. Ganglmair, Bernhard & Holcomb, Alex & Myung, Noah, 2016. "Cutthroats or comrades: Information sharing among competing fund managers," MPRA Paper 71506, University Library of Munich, Germany.
    4. Ganglmair, Bernhard & Holcomb, Alex & Myung, Noah, 2020. "Expectations of reciprocity when competitors share information: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 244-267.
    5. Küpper, Hans-Ulrich & Sandner, Kai, 2008. "Differences in Social Preferences - Are They Profitable for the Firm?," Discussion Papers in Business Administration 2122, University of Munich, Munich School of Management.
    6. Philippe Batifoulier & Nicolas Da Silva, 2014. "Medical Altruism in Mainstream Health Economics: Theoretical and Political Paradoxes," Review of Social Economy, Taylor & Francis Journals, vol. 72(3), pages 261-279, September.
    7. Philippe Batifoulier & Nicolas Da Silva, 2014. "The economic behaviour of doctors: medical altruism without an ethic?," EconomiX Working Papers 2014-9, University of Paris Nanterre, EconomiX.
    8. Jean Mercier-Ythier, 2010. "The Aggregation of Individual Distributive Preferences through the Distributive Liberal Social Contract : Normative Analysis," Working Papers of BETA 2010-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    9. Andreas Wagener, 2012. "Why Do People (Not) Cough in Concerts? The Economics of Concert Etiquette," ACEI Working Paper Series AWP-05-2012, Association for Cultural Economics International, revised Dec 2012.
    10. Ola Andersson & Håkan J. Holm & Jean-Robert Tyran & Erik Wengström, 2016. "Deciding for Others Reduces Loss Aversion," Management Science, INFORMS, vol. 62(1), pages 29-36, January.
    11. Oriana Bandiera & Iwan Barankay & Imran Rasul, 2010. "Social Incentives in the Workplace," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(2), pages 417-458.
    12. Sarah Brown & Preety Srivastava & Karl Taylor, 2015. "Intergenerational analysis of the donating behavior of parents and their offspring," Southern Economic Journal, John Wiley & Sons, vol. 82(1), pages 122-151, July.
    13. Pierre-Guillaume Méon & Philip Verwimp, 2016. "Pro-social behavior after a disaster: parochial or universal? Evidence from a natural experiment in Belgium," Working Papers CEB 16-054, ULB -- Universite Libre de Bruxelles.

    More about this item

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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