Understanding Social Preferences with Simple Tests

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Understanding Social Preferences with Simple Tests

Author Info

Gary Charness (University of California, Santa Barbara)
Matthew Rabin (University of California, Berkeley)

Additional information is available for the following registered author(s):

Gary Charness

Abstract

Departures from self-interest in economic experiments have recently inspired models of "social preferences". We design a range of simple experimental games that test these theories more directly than existing experiments. Our experiments show that subjects are more concerned with increasing social welfare sacrificing to increase the payoffs for all recipients, especially low-payoff recipients than with reducing differences in payoffs (as supposed in recent models). Subjects are also motivated by reciprocity: They withdraw willingness to sacrifice to achieve a fair outcome when others are themselves unwilling to sacrifice, and sometimes punish unfair behavior.

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Paper provided by EconWPA in its series General Economics and Teaching with number 0303002.

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Length: 57 pages
Date of creation: 19 Mar 2003
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Handle: RePEc:wpa:wuwpgt:0303002

Note: 57 pages, Acrobat .pdf
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Article
- Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences With Simple Tests," The Quarterly Journal of Economics, MIT Press, vol. 117(3), pages 817-869, August. [Downloadable!] (restricted)
Paper
- Gary Charness & Matthew Rabin, 2001. "Understanding Social Preferences With Simple Tests," University of California at Santa Barbara, Economics Working Paper Series 21-01, Department of Economics, UC Santa Barbara. [Downloadable!]
- Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series 1042, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]

Find related papers by JEL classification:
A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

This paper has been announced in the following NEP Reports:

NEP-ALL-2003-03-25 (All new papers)
NEP-CBE-2003-03-25 (Cognitive & Behavioural Economics)

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References listed on IDEAS
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McCabe, Kevin A. & Rigdon, Mary L. & Smith, Vernon L., 2003. "Positive reciprocity and intentions in trust games," Journal of Economic Behavior & Organization, Elsevier, vol. 52(2), pages 267-275, October. [Downloadable!] (restricted)
repec:att:wimass:1919994 is not listed on IDEAS
James Andreoni, 2001. "Giving According to GARP," Theory workshop papers 339, UCLA Department of Economics. [Downloadable!]
Dufwenberg, Martin & Gneezy, Uri, 2000. "Measuring Beliefs in an Experimental Lost Wallet Game," Games and Economic Behavior, Elsevier, vol. 30(2), pages 163-182, February. [Downloadable!] (restricted)
Charness, Gary & Haruvy, Ernan, 2002. "Altruism, equity, and reciprocity in a gift-exchange experiment: an encompassing approach," Games and Economic Behavior, Elsevier, vol. 40(2), pages 203-231, August. [Downloadable!] (restricted)
Other versions:
- Gary Charness & Ernan Haruvy, 1999. "Altruism, Equity, And Reciprocity In A Gift-Exchange Experiment: An Encompassing Approach," University of California at Santa Barbara, Economics Working Paper Series 13-99, Department of Economics, UC Santa Barbara. [Downloadable!]
- Gary Charness & Ernan Haruvy, 1999. "Altruism, Equity, and Reciprocity in a Gift-Exchange Experiment: An Encompassing Approach," Economics Working Papers 368, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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Other versions:
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- Dufwenberg, Martin & Kirchsteiger, Georg, 2004. "A theory of sequential reciprocity," Games and Economic Behavior, Elsevier, vol. 47(2), pages 268-298, May. [Downloadable!] (restricted)
Gary Bolton & Jordi Brandts & Axel Ockenfels, 1998. "Measuring Motivations for the Reciprocal Responses Observed in a Simple Dilemma Game," Experimental Economics, Springer, vol. 1(3), pages 207-219, December. [Downloadable!] (restricted)
Other versions:
- Bolton, G.E. & Brandts, J. & Ockenfels, A., 1997. "Measuring Motivations for the Reciprocal Responses Observed in a Simple Dilemma Game," UFAE and IAE Working Papers 400.97, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
Croson, Rachel T. A., 1999. "The Disjunction Effect and Reason-Based Choice in Games, , , , , , , , , , , , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 80(2), pages 118-133, November. [Downloadable!] (restricted)
Brandts, J. & Sola, C., 1998. "Reference Points and Negative Reciprocity in Simple Sequential Games," UFAE and IAE Working Papers 425.98, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory Of Fairness, Competition, And Cooperation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 817-868, August. [Downloadable!] (restricted)
Other versions:
- Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers iewwp004, Institute for Empirical Research in Economics - IEW. [Downloadable!]
- Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers 1812, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Gary Charness & Matthew Rabin, 2000. "Social Preferences: Some Simple Tests and a New Model," Econometric Society World Congress 2000 Contributed Papers 1483, Econometric Society. [Downloadable!]
Other versions:
- Gary Charness & Matthew Rabin, 2001. "Social Preferences: Some Simple Tests and a New Model," General Economics and Teaching 0012002, EconWPA. [Downloadable!]
- Gary Charness & Matthew Rabin, 2000. "Social Preferences: Some Simple Tests and a New Model," Department of Economics, Working Paper Series 1030, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
- Gary Charness & Matthew Rabin, 1999. "Social Preferences: Some Simple Tests and a New Model," Economics Working Papers 441, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2000. [Downloadable!]
- Gary Charness and Matthew Rabin., 2000. "Social Preferences: Some Simple Tests and a New Model," Economics Working Papers E00-283, University of California at Berkeley. [Downloadable!]
Armin Falk & Ernst Fehr & Urs Fischbacher, . "On the Nature of Fair Behavior," IEW - Working Papers iewwp017, Institute for Empirical Research in Economics - IEW. [Downloadable!]
Other versions:
- Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2001. "On the Nature of Fair Behaviour," CEPR Discussion Papers 2984, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Armin Falk & Ernst Fehr & Urs Fischbacher, 2003. "On the Nature of Fair Behavior," Economic Inquiry, Oxford University Press, vol. 41(1), pages 20-26, January.
Gary E. Bolton & Axel Ockenfels, 1998. "Strategy and Equity: An ERC Analysis of the Guth-van Damme Game," Levine's Working Paper Archive 2060, David K. Levine. [Downloadable!]
Theo Offerman, 1999. "Hurting hurts more than Helping helps: The Role of the Self-serving Bias," Tinbergen Institute Discussion Papers 99-018/1, Tinbergen Institute. [Downloadable!]
Charness, Gary & Grosskopf, Brit, 2001. "Relative payoffs and happiness: an experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 45(3), pages 301-328, July. [Downloadable!] (restricted)
Other versions:
- Gary Charness & Brit Grosskopf, 1999. "Relative Payoffs and Happiness: An Experimental Study," Economics Working Papers 436, Department of Economics and Business, Universitat Pompeu Fabra, revised Jan 2000. [Downloadable!]
- Brit Grosskopf, 2000. "Relative Payoffs and Happiness: An Experimental Study," Econometric Society World Congress 2000 Contributed Papers 1263, Econometric Society. [Downloadable!]
- Gary Charness & Brit Grosskopf, 2000. "Relative Payoffs And Happiness: An Experimental Study," University of California at Santa Barbara, Economics Working Paper Series 13-00, Department of Economics, UC Santa Barbara. [Downloadable!]
Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, vol. 54(2), pages 293-315, February. [Downloadable!] (restricted)
Other versions:
- Armin Falk & Urs Fischbacher, . "A Theory of Reciprocity," IEW - Working Papers iewwp006, Institute for Empirical Research in Economics - IEW. [Downloadable!]
- Armin Falk & Urs Fischbacher, 2001. "A Theory of Reciprocity," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
- Falk, Armin & Fischbacher, Urs, 2001. "A Theory of Reciprocity," CEPR Discussion Papers 3014, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Charness, Gary, 2000. "Responsibility and effort in an experimental labor market," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 375-384, July. [Downloadable!] (restricted)
Other versions:
- Gary Charness, 1999. "Responsibility And Effort In An Experimental Labor Market," University of California at Santa Barbara, Economics Working Paper Series 16-99, Department of Economics, UC Santa Barbara. [Downloadable!]
Engelmann,Dirk & Strobel,Martin, 2002. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," Research Memoranda 015, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
Other versions:
- Dirk Engelmann & Martin Strobel, 2004. "Inequality Aversion, Efficiency, and Maximin Preferences in Simple Distribution Experiments," American Economic Review, American Economic Association, vol. 94(4), pages 857-869, September. [Downloadable!]
Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December. [Downloadable!] (restricted)
Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July. [Downloadable!] (restricted)

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