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Living in Two Neighborhoods -- Social Interactions in the LAB

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Author Info
Armin Falk ()
Urs Fischbacher ()
Simon Gaechter ()

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Abstract

Field evidence suggests that agents belonging to the same group tend to behave similarly, i.e., behavior exhibits social interaction effects. Testing for such effects raises severe identification problems. We conduct an experiment that avoids these problems. The main design feature is that each subject simultaneously is a member of two randomly assigned and economically identical groups where only members ('neighbors') are different. In both groups subjects make contribution decisions to a public good. We speak of social interactions if the same subject at the same time makes group-specific contributions that depend on their respective neighbors' contribution. Our results are unambiguous evidence for social interactions. A majority of subjects is very strongly influenced by the contributions of their respective neighbors. Roughly ten percent exhibit no social interactions.

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Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number CESifo Working Paper No. 954.

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Date of creation: 2003
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Handle: RePEc:ces:ceswps:_954

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Related research
Keywords: social interactions identification experiments

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Find related papers by JEL classification:
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Erin Krupka & Roberto A. Weber, 2007. "The Focusing and Informational Effects of Norms on Pro-Social Behavior," IZA Discussion Papers 3169, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Rupert Sausgruber, 2005. "Testing for Team Spirit - An Experimental Study," Experimental 0508001, EconWPA. [Downloadable!]
  3. Jorge Martinez-Vazquez & Benno Torgler, 2007. "The Evolution of Tax Morale in Modern Spain," International Studies Program Working Paper Series, at AYSPS, GSU paper0719, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
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  4. Alexandre Mas & Enrico Moretti, 2006. "Peers at Work," IZA Discussion Papers 2292, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. C. Mónica Capra & Lei Li, 2006. "Conformity in contribution games: gender and group effects," Emory Economics 0601, Department of Economics, Emory University (Atlanta). [Downloadable!]
  6. Antonio Cabrales & Gary Charness, 2003. "Optimal Contracts, Adverse Selection & Social Preferences: An Experiment," University of California at Santa Barbara, Economics Working Paper Series 11-03, Department of Economics, UC Santa Barbara. [Downloadable!]
  7. Siegfried Berninghaus & Sven Fischer & Werner Güth, 2006. "Social Networks and Employment - An Experimental Analysis," Discussion Papers on Strategic Interaction 2006-31, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
  8. Benno Torgler & Bruno S. Frey & Clevo Wilson, 2007. "Environmental and Pro-Social Norms: Evidence from 30 Countries," Working Papers 2007.84, Fondazione Eni Enrico Mattei. [Downloadable!]
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