IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/23282.html
   My bibliography  Save this paper

The endogenous nature of the measurement of social preferences

Author

Listed:
  • Smith, John

Abstract

Measures of preferences are primarily useful in that they are helpful in predicting behavior. We perform an experiment which demonstrates that the timing of the measurement of social preferences can affect such a measure. Researchers often measure social preferences by posing a series of dictator game allocation decisions; we use a particular technique, Social Value Orientation (SVO). We vary the order of the SVO measurement and a lager stakes dictator game. In our first study, we find that subjects with prosocial preferences act even more prosocially when the SVO measurement is administered first, whereas those with selfish preferences are unaffected by the order. In our second study we vary the order of the SVO measurement and a nonstandard dictator game. We do not find the effect found in the first study. This suggests that the effect found in the first study is driven by choices involving the size of surplus.

Suggested Citation

  • Smith, John, 2010. "The endogenous nature of the measurement of social preferences," MPRA Paper 23282, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:23282
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/23282/1/MPRA_paper_23282.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/29173/1/MPRA_paper_29173.pdf
    File Function: revised version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/35078/1/MPRA_paper_35078.pdf
    File Function: revised version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/35082/1/MPRA_paper_35082.pdf
    File Function: revised version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/39996/2/MPRA_paper_39996.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Isoni, Andrea & Brooks, Peter & Loomes, Graham & Sugden, Robert, 2016. "Do markets reveal preferences or shape them?," Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 1-16.
    3. Neil Buckley & Kenneth Chan & James Chowhan & Stuart Mestelman & Mohamed Shehata, 2001. "Value Orientations, Income and Displacement Effects, and Voluntary Contributions," Experimental Economics, Springer;Economic Science Association, vol. 4(2), pages 183-195, October.
    4. James C. Cox & Vjollca Sadiraj, 2012. "Direct Tests Of Individual Preferences For Efficiency And Equity," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 920-931, October.
    5. Canegallo, Claudia & Ortona, Guido & Ottone, Stefania & Ponzano, Ferruccio & Scacciati, Francesco, 2008. "Competition versus cooperation: Some experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 18-30, February.
    6. Güth, Werner & Levati, M. Vittoria & Ploner, Matteo, 2008. "Social identity and trust--An experimental investigation," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1293-1308, August.
    7. James C. Cox & Vjollca Sadiraj, 2006. "Direct Tests of Models of Social Preferences and a New Model," Experimental Economics Center Working Paper Series 2006-13, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University, revised Jul 2010.
    8. Astrid Matthey & Tobias Regner, 2013. "On the independence of history: experience spill-overs between experiments," Theory and Decision, Springer, vol. 75(3), pages 403-419, September.
    9. Carlsson, Fredrik & Johansson-Stenman, Olof & Nam, Pham Khanh, 2014. "Social preferences are stable over long periods of time," Journal of Public Economics, Elsevier, vol. 117(C), pages 104-114.
    10. Gächter, Simon & Orzen, Henrik & Renner, Elke & Starmer, Chris, 2009. "Are experimental economists prone to framing effects? A natural field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 70(3), pages 443-446, June.
    11. Buckley, Neil & Mestelman, Stuart & Shehata, Mohamed, 2003. "Subsidizing public inputs," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 819-846, March.
    12. Bednar, Jenna & Chen, Yan & Liu, Tracy Xiao & Page, Scott, 2012. "Behavioral spillovers and cognitive load in multiple games: An experimental study," Games and Economic Behavior, Elsevier, vol. 74(1), pages 12-31.
    13. Anya C. Savikhin & Roman M. Sheremeta, 2013. "Simultaneous Decision-Making In Competitive And Cooperative Environments," Economic Inquiry, Western Economic Association International, vol. 51(2), pages 1311-1323, April.
    14. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
    15. Markus Sass & Joachim Weimann, 2012. "The Dynamics of Individual Preferences in Repeated Public Good Experiments," FEMM Working Papers 120002, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    16. Kanagaretnam, Kiridaran & Mestelman, Stuart & Nainar, Khalid & Shehata, Mohamed, 2009. "The impact of social value orientation and risk attitudes on trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 368-380, June.
    17. Jeffrey P. Carpenter, 2005. "Endogenous Social Preferences," Review of Radical Political Economics, Union for Radical Political Economics, vol. 37(1), pages 63-84, March.
    18. Smith, Vernon L., 2010. "Theory and experiment: What are the questions?," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 3-15, January.
    19. Jeanette Brosig & Thomas Riechmann & Joachim Weimann, 2007. "Selfish in the end? An investigation of consistency and stability of individual behaviour," FEMM Working Papers 07005, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    20. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(3), pages 817-869.
    21. Carpenter, Jeffrey P., 2003. "Is fairness used instrumentally? Evidence from sequential bargaining," Journal of Economic Psychology, Elsevier, vol. 24(4), pages 467-489, August.
    22. Frisch, Deborah, 1993. "Reasons for Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 54(3), pages 399-429, April.
    23. Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(2), pages 269-299.
    24. Offerman, Theo & Sonnemans, Joep & Schram, Arthur, 1996. "Value Orientations, Expectations and Voluntary Contributions in Public Goods," Economic Journal, Royal Economic Society, vol. 106(437), pages 817-845, July.
    25. Eckel, Catherine C. & Grossman, Philip J., 2005. "Managing diversity by creating team identity," Journal of Economic Behavior & Organization, Elsevier, vol. 58(3), pages 371-392, November.
    26. Volk, Stefan & Thöni, Christian & Ruigrok, Winfried, 2012. "Temporal stability and psychological foundations of cooperation preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 664-676.
    27. Van Huyck John B. & Battalio Raymond C. & Beil Richard O., 1993. "Asset Markets as an Equilibrium Selection Mechanism: Coordination Failure, Game Form Auctions, and Tacit Communication," Games and Economic Behavior, Elsevier, vol. 5(3), pages 485-504, July.
    28. Ruffle, Bradley J., 1998. "More Is Better, But Fair Is Fair: Tipping in Dictator and Ultimatum Games," Games and Economic Behavior, Elsevier, vol. 23(2), pages 247-265, May.
    29. Schotter, Andrew & Weiss, Avi & Zapater, Inigo, 1996. "Fairness and survival in ultimatum and dictatorship games," Journal of Economic Behavior & Organization, Elsevier, vol. 31(1), pages 37-56, October.
    30. Gert Cornelissen & Siegfried Dewitte & Luk Warlop, "undated". "Social Value Orientation as a Moral Intuition: Decision-Making in the Dictator Game," Working Papers 322, Barcelona School of Economics.
    31. Angela C. M. de Oliveira & Catherine Eckel & Rachel T. A. Croson, 2012. "The Stability of Social Preferences in a Low-Income Neighborhood," Southern Economic Journal, John Wiley & Sons, vol. 79(1), pages 15-45, July.
    32. Borgloh, Sarah & Dannenberg, Astrid & Aretz, Bodo, 2010. "On the construction of social preferences in lab experiments," ZEW Discussion Papers 10-085, ZEW - Leibniz Centre for European Economic Research.
    33. Blanco, Mariana & Engelmann, Dirk & Normann, Hans Theo, 2011. "A within-subject analysis of other-regarding preferences," Games and Economic Behavior, Elsevier, vol. 72(2), pages 321-338, June.
    34. Crawford, Vincent & Broseta, Bruno, 1998. "What Price Coordination? The Efficiency-Enhancing Effect of Auctioning the Right to Play," American Economic Review, American Economic Association, vol. 88(1), pages 198-225, March.
    35. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
    36. Bruno S. Frey & Iris Bohnet, 1999. "Social Distance and Other-Regarding Behavior in Dictator Games: Comment," American Economic Review, American Economic Association, vol. 89(1), pages 335-339, March.
    37. Jenna Bednar & Scott Page, 2007. "Can Game(s) Theory Explain Culture?," Rationality and Society, , vol. 19(1), pages 65-97, February.
    38. Gert Cornelissen & Siegfried Dewitte & Luk Warlop, 2007. "Social value orientation as a moral intuition: Decision-making in the dictator game," Economics Working Papers 1028, Department of Economics and Business, Universitat Pompeu Fabra.
    39. Samuel Bowles, 1998. "Endogenous Preferences: The Cultural Consequences of Markets and Other Economic Institutions," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 75-111, March.
    40. Anders Poulsen & Odile Poulsen, 2006. "Endogenous Preferences and Social-Dilemma Institutions," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 162(4), pages 627-660, December.
    41. Sonnemans, Joep & Dijk, Frans van & Winden, Frans van, 2006. "On the dynamics of social ties structures in groups," Journal of Economic Psychology, Elsevier, vol. 27(2), pages 187-204, April.
    42. Fredrik Carlsson & Olof Johansson-Stenman & Pham Khanh Nam, 2012. "Are Social Preferences Stable over Time?," Working Papers 13, Development and Policies Research Center (DEPOCEN), Vietnam.
    43. Roberto Burlando & Francesco Guala, 2005. "Heterogeneous Agents in Public Goods Experiments," Experimental Economics, Springer;Economic Science Association, vol. 8(1), pages 35-54, April.
    44. Yan Chen & Sherry Xin Li, 2009. "Group Identity and Social Preferences," American Economic Review, American Economic Association, vol. 99(1), pages 431-457, March.
    45. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
    46. Pruyn, Ad & Riezebos, Rik, 2001. "Effects of the awareness of social dilemmas on advertising budget-setting: A scenario study," Journal of Economic Psychology, Elsevier, vol. 22(1), pages 43-60, February.
    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. Chen, Chia-Ching & Chiu, I-Ming & Smith, John & Yamada, Tetsuji, 2011. "Too smart to be selfish? Measures of intelligence, social preferences, and consistency," MPRA Paper 34438, University Library of Munich, Germany.
    2. Chen, Chia-Ching & Chiu, I-Ming & Smith, John & Yamada, Tetsuji, 2013. "Too smart to be selfish? Measures of cognitive ability, social preferences, and consistency," Journal of Economic Behavior & Organization, Elsevier, vol. 90(C), pages 112-122.

    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. Smith, John, 2009. "The endogenous nature of social preferences," MPRA Paper 16599, University Library of Munich, Germany.
    2. Anna Conte & M. Vittoria Levati & Natalia Montinari, 2019. "Experience in public goods experiments," Theory and Decision, Springer, vol. 86(1), pages 65-93, February.
    3. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    4. John Smith & Katerina Bezrukova, 2008. "Towards an Understanding of the Endogenous Nature of Identity in Games," Departmental Working Papers 200806, Rutgers University, Department of Economics.
    5. Chuang, Yating & Schechter, Laura, 2015. "Stability of experimental and survey measures of risk, time, and social preferences: A review and some new results," Journal of Development Economics, Elsevier, vol. 117(C), pages 151-170.
    6. Mohamed I. Gomaa & Stuart Mestelman & Mohamed Shehata, 2014. "Social Distance, Reputation, Risk Attitude, Value Orientation and Equity in Economic Exchanges," Department of Economics Working Papers 2014-07, McMaster University.
    7. Sun-Ki Chai & Dolgorsuren Dorj & Katerina Sherstyuk, 2018. "Cultural Values and Behavior in Dictator, Ultimatum, and Trust Games: An Experimental Study," Research in Experimental Economics, in: Experimental Economics and Culture, volume 20, pages 89-166, Emerald Group Publishing Limited.
    8. Jeffrey P. Carpenter, 2005. "Endogenous Social Preferences," Review of Radical Political Economics, Union for Radical Political Economics, vol. 37(1), pages 63-84, March.
    9. Kanagaretnam, Kiridaran & Mestelman, Stuart & Nainar, Khalid & Shehata, Mohamed, 2009. "The impact of social value orientation and risk attitudes on trust and reciprocity," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 368-380, June.
    10. repec:cup:judgdm:v:12:y:2017:i:6:p:527-536 is not listed on IDEAS
    11. Kamas, Linda & Preston, Anne, 2015. "Can social preferences explain gender differences in economic behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 525-539.
    12. Sunaina Shrivastava & Gaurav Jain & Dhananjay Nayakankuppam & Gary J. Gaeth & Irwin P Levin, 2017. "Numerosity and allocation behavior: Insights using the dictator game," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 12(6), pages 527-536, November.
    13. Kamas, Linda & Preston, Anne, 2012. "Distributive and reciprocal fairness: What can we learn from the heterogeneity of social preferences?," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 538-553.
    14. Robson, Matthew, 2021. "Inequality aversion, self-interest and social connectedness," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 744-772.
    15. Kiridaran Kanagaretnam & Stuart Mestelman & Khalid Nainar & Mohamed Shehata, 2006. "Trust, Reciprocity and the Roles of Sex, Value Orientation and Risk Attitudes in an Investment Game," Department of Economics Working Papers 2006-04, McMaster University.
    16. Sean M. Collins & John R. Hamman & John P. Lightle, 2018. "Market Interaction and Pro‐Social Behavior: An Experimental Study," Southern Economic Journal, John Wiley & Sons, vol. 84(3), pages 692-715, January.
    17. Pablo Brañas-Garza & Antonio Morales, 2005. "Moral Framing in Dictator Games by Short Sentences," ThE Papers 05/06, Department of Economic Theory and Economic History of the University of Granada..
    18. Sadrieh, A., 2003. "Equity versus Warm Glow in Intergenerational Giving," Other publications TiSEM 89f19483-3c73-4838-854f-9, Tilburg University, School of Economics and Management.
    19. Thorsten Chmura & Christoph Engel & Markus Englerth, 2013. "Selfishness As a Potential Cause of Crime. A Prison Experiment," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2013_05, Max Planck Institute for Research on Collective Goods.
    20. Kurt A. Ackermann & Ryan O. Murphy, 2019. "Explaining Cooperative Behavior in Public Goods Games: How Preferences and Beliefs Affect Contribution Levels," Games, MDPI, vol. 10(1), pages 1-34, March.
    21. Jeannette Brosig-Koch & Thomas Riechmann & Joachim Weimann, 2017. "The dynamics of behavior in modified dictator games," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-18, April.

    More about this item

    Keywords

    experimental economics; social values; dictator game; social value orientation;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:23282. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.