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Sociality is Not Lost with Monetary Transactions within Social Groups

Author

Listed:
  • Lukinova, Evgeniya
  • Babkina, Tatiana
  • Sedush, Anna
  • Menshikov, Ivan
  • Menshikova, Olga
  • Myagkov, Mikhail

Abstract

This paper investigates how the group membership fee influences the cooperation rate within the groups formed through the socialization. Our previous findings suggest that socialization, or social interactions in groups, create sociality and, therefore, establish a society with sustained cooperation and fairness. In line with Social Identity Theory, we assert some esteem or value to be gained through group differentiation. What will happen with this additional value once we try to quantify it? For this purpose, we observed two cases: socialized participants should pay the fee to stay in-group; participants should pay the fee to join the group, socialize and stay there. We find that monetary transactions are not determinative on their own; rather the consequences of these transactions can hurt collective action through a forced division of participants into those who paid enough (in-group) and those who did not (out-group). More over, despite the fact that being in-group and out-group is an economically equal situation, participants are willing to pay the fee to stay in their socialized group or pay the fee to join the group before socialization.

Suggested Citation

  • Lukinova, Evgeniya & Babkina, Tatiana & Sedush, Anna & Menshikov, Ivan & Menshikova, Olga & Myagkov, Mikhail, 2017. "Sociality is Not Lost with Monetary Transactions within Social Groups," MPRA Paper 82800, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:82800
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    File URL: https://mpra.ub.uni-muenchen.de/82800/1/paper3.pdf
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    References listed on IDEAS

    as
    1. Ertaç, Seda & Hortaçsu, Ali & Roberts, James W., 2011. "Entry into auctions: An experimental analysis," International Journal of Industrial Organization, Elsevier, vol. 29(2), pages 168-178, March.
    2. repec:cup:judgdm:v:6:y:2011:i:8:p:771-781 is not listed on IDEAS
    3. Jason A. Aimone & Laurence R. Iannaccone & Michael D. Makowsky & Jared Rubin, 2013. "Endogenous Group Formation via Unproductive Costs," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 80(4), pages 1215-1236.
    4. Babkina, Tatiana & Myagkov, Mikhail & Lukinova, Evgeniya & Peshkovskaya, Anastasiya & Menshikova, Olga & Berkman, Elliot T., 2016. "Choice of the Group Increases Intra-Cooperation," MPRA Paper 77758, University Library of Munich, Germany.
    5. Elliot T Berkman & Evgeniya Lukinova & Ivan Menshikov & Mikhail Myagkov, 2015. "Sociality as a Natural Mechanism of Public Goods Provision," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-18, March.
    6. Anastasia G Peshkovskaya & Tatiana S Babkina & Mikhail G Myagkov & Ivan A Kulikov & Ksenia V Ekshova & Kyle Harriff, 2017. "The socialization effect on decision making in the Prisoner's Dilemma game: An eye-tracking study," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-15, April.
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    Cited by:

    1. Tatiana Kozitsina & Alexander Chaban & Evgeniya Lukinova & Mikhail Myagkov, 2020. "The effect of monetary incentives on sociality induced cooperation," Papers 2011.07597, arXiv.org.
    2. Anastasia Peshkovskaya & Tatiana Babkina & Mikhail Myagkov, 2018. "Social context reveals gender differences in cooperative behavior," Journal of Bioeconomics, Springer, vol. 20(2), pages 213-225, July.

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    More about this item

    Keywords

    Prisoner’s Dilemma; Socialization; Cooperation; Auction; Group Formation; Membership Fee; Experimental Economics;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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