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Social Influence in the Sequential Dictator Game

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Abstract

This paper introduces the sequential dictator game to study how social influence may affect subjects' choices when making dictator allocations. Subjects made dictator allocations of 840 before and after learning the allocation made by one other subject in the Relevant Information treatment, or the birthday of one other subject in the Irrelevant Information treatment. Subjects on average become more self-regarding in the Irrelevant Information treatment, but observing relevant information constrains some subjects from moving toward more self-regarding choices. We also find that subjects who exhibit more self-regarding behavior on their first decisions are less likely to change choices between their first and second decisions, and the use of the Strategy Method in this setting does not significantly alter choices. The relationships between our findings and the economic and psychological literature regarding how social influence operates are also explored.

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File URL: http://www.krannert.purdue.edu/faculty/cason/papers/socinf_jmp.pdf
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File URL: http://dx.doi.org/10.1006/jmps.1998.1213
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Bibliographic Info

Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number archive-37.

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Length: 18 pages
Date of creation: 1998
Date of revision:
Publication status: published in Journal of Mathematical Psychology Vol. 42,Issues 2-3; 248-265
Handle: RePEc:mos:moswps:archive-37

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Postal: Department of Economics, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2493
Fax: +61-3-9905-5476
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Web page: http://www.buseco.monash.edu.au/eco/
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  1. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-77, October.
  2. Matthew Rabin, 1998. "Psychology and Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 11-46, March.
  3. Cason, Timothy N & Mui, Vai-Lam, 1997. "A Laboratory Study of Group Polarisation in the Team Dictator Game," Economic Journal, Royal Economic Society, vol. 107(444), pages 1465-83, September.
  4. Akerlof, George A, 1980. "A Theory of Social Custom, of Which Unemployment May be One Consequence," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 749-75, June.
  5. Fershtman, C. & Murphy, K.M., 1993. "Social Status, Education and Growth," Papers 8-93, Tel Aviv.
  6. Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer, vol. 27(2), pages 269-299.
  7. Straub, Paul G. & Murnighan, J. Keith, 1995. "An experimental investigation of ultimatum games: information, fairness, expectations, and lowest acceptable offers," Journal of Economic Behavior & Organization, Elsevier, vol. 27(3), pages 345-364, August.
  8. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
  9. Levine, David I., 1991. "Cohesiveness, productivity, and wage dispersion," Journal of Economic Behavior & Organization, Elsevier, vol. 15(2), pages 237-255, March.
  10. Sushil Bikhchandani & David Hirshleifer & Ivo Welch, 2010. "A theory of Fads, Fashion, Custom and cultural change as informational Cascades," Levine's Working Paper Archive 1193, David K. Levine.
  11. Banerjee, Abhijit V, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 797-817, August.
  12. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
  13. Weimann, Joachim, 1994. "Individual behaviour in a free riding experiment," Journal of Public Economics, Elsevier, vol. 54(2), pages 185-200, June.
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