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They are watching you: Social facilitation in institutions

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Author Info
Gary Charness (Economics Department, University of California, Santa Barbara)
Luca Rigotti (Fuqua School of Business, Duke University)
Aldo Rustichini (University of Minnesota)

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Abstract

Social facilitation describes the effect on performance due to the mere presence of others. Here we study the effect of the mere presence of an audience on the behavior of people involved in a strategic interaction and on the performance of institutions. In our laboratory experiment, two active participants play the game and receive payoffs determined by their choices, while inactive participants receive a share of this outcome. In our 2x2 design, bystanders may or not be physically present during play, and active and inactive participants may or not be immediately informed of the outcome of the game just played.We find significant differences in behavior across treatments: When bystanders are present, players are more likely to choose the strategy favorable to the audience. Withholding immediate feedback about play weakens this effect substantially, but not completely. These results suggest that social facilitation extends to strategic environments.

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Publisher Info
Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number 16-03.

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Date of creation: 24 Oct 2003
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Handle: RePEc:cdl:ucsbec:16-03

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Related research
Keywords: watching; Social; facilitation; institutions;

References listed on IDEAS
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  1. Straub, Paul G., 1995. "Risk dominance and coordination failures in static games," The Quarterly Review of Economics and Finance, Elsevier, vol. 35(4), pages 339-363. [Downloadable!] (restricted)
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Cited by:
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  1. A. Chaudhuri & L. Gangadharan & Pushkar Maitra, 2005. "An Experimental Analysis ofGroup Size and Risk Sharing," Department of Economics - Working Papers Series 955, The University of Melbourne. [Downloadable!]
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This page was last updated on 2009-11-16.


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