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Living in Two Neighborhoods - Social Interactions in the Lab

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Author Info
Armin Falk
Urs Fischbacher
Simon Gächter

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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 Institute for Empirical Research in Economics - IEW in its series IEW - Working Papers with number iewwp150.

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Keywords: Social interactions identification experiments

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

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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. C. Mónica Capra & Lei Li, 2006. "Conformity in contribution games: gender and group effects," Emory Economics 0601, Department of Economics, Emory University (Atlanta). [Downloadable!]
  2. Alexandre Mas & Enrico Moretti, 2006. "Peers at Work," NBER Working Papers 12508, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. 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!]
    Other versions:
  4. 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!]
  5. Jorge Martinez-Vazquez & Benno Torgler, 2007. "The Evolution of Tax Morale in Modern Spain," School of Economics and Finance Discussion Papers and Working Papers Series 224, School of Economics and Finance, Queensland University of Technology, revised 12 Aug 2008. [Downloadable!]
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  6. 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!]
  7. 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!]
  8. Rupert Sausgruber, 2005. "Testing for Team Spirit - An Experimental Study," Experimental 0508001, EconWPA. [Downloadable!]
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