IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v192y2021icp248-267.html
   My bibliography  Save this article

Social policy instruments and the compliance environment

Author

Listed:
  • Kessler, Judd B.
  • Low, Corinne
  • Singhal, Monica

Abstract

Two types of social policy instruments — making group behavior public to the individual and making individual behavior public to the group — are used by charities to encourage giving and by policymakers to incentivize other prosocial behaviors. However, models of social norms suggest that the effects of such interventions are theoretically ambiguous and may even backfire in low-compliance environments. We examine these questions in the context of a public good game. Exploiting a unique experimental design, we show that initial contributors' giving decisions are sensitive to the behavior of the group while initial non-contributors' decisions are not. In contrast, making own behavior public to the group increases contributions for all group types, even those comprised entirely of initial non-contributors. These findings suggest that publicizing contributions causes individuals to respond to a common understanding of prosocial behavior that is not defined solely by the initial group norm.

Suggested Citation

  • Kessler, Judd B. & Low, Corinne & Singhal, Monica, 2021. "Social policy instruments and the compliance environment," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 248-267.
  • Handle: RePEc:eee:jeborg:v:192:y:2021:i:c:p:248-267
    DOI: 10.1016/j.jebo.2021.09.037
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268121004224
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jebo.2021.09.037?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Anya Savikhin Samek & Roman Sheremeta, 2014. "Recognizing contributors: an experiment on public goods," Experimental Economics, Springer;Economic Science Association, vol. 17(4), pages 673-690, December.
    3. Amihai Glazer & Kai A. Konrad, 2008. "A Signaling Explanation for Charity," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 713-722, Springer.
    4. Stefano DellaVigna & John A. List & Ulrike Malmendier, 2012. "Testing for Altruism and Social Pressure in Charitable Giving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 1-56.
    5. Bracha, Anat & Menietti, Michael & Vesterlund, Lise, 2011. "Seeds to succeed?: Sequential giving to public projects," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 416-427, June.
    6. Jean Tirole & Roland Bénabou, 2006. "Incentives and Prosocial Behavior," American Economic Review, American Economic Association, vol. 96(5), pages 1652-1678, December.
    7. Fischbacher, Urs & Gachter, Simon & Fehr, Ernst, 2001. "Are people conditionally cooperative? Evidence from a public goods experiment," Economics Letters, Elsevier, vol. 71(3), pages 397-404, June.
    8. Andreoni, James & Petrie, Ragan, 2004. "Public goods experiments without confidentiality: a glimpse into fund-raising," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1605-1623, July.
    9. repec:wly:soecon:v:82:3:y:2016:p:801-808 is not listed on IDEAS
    10. David Masclet & Charles Noussair & Steven Tucker & Marie-Claire Villeval, 2003. "Monetary and Nonmonetary Punishment in the Voluntary Contributions Mechanism," American Economic Review, American Economic Association, vol. 93(1), pages 366-380, March.
    11. Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    12. Perez-Truglia, Ricardo & Troiano, Ugo, 2018. "Shaming tax delinquents," Journal of Public Economics, Elsevier, vol. 167(C), pages 120-137.
    13. Urs Fischbacher & Simon Gachter, 2010. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Goods Experiments," American Economic Review, American Economic Association, vol. 100(1), pages 541-556, March.
    14. Soetevent, Adriaan R., 2005. "Anonymity in giving in a natural context--a field experiment in 30 churches," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2301-2323, December.
    15. Billur Aksoy & Silvana Krasteva, 2020. "When does less information translate into more giving to public goods?," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 1148-1177, December.
    16. Anya Samek & Roman M. Sheremeta, 2017. "Selective Recognition: How to Recognize Donors to Increase Charitable Giving," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1489-1496, July.
    17. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    18. Hunt Allcott & Judd B. Kessler, 2019. "The Welfare Effects of Nudges: A Case Study of Energy Use Social Comparisons," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 236-276, January.
    19. Attila Ambrus & Ben Greiner, 2012. "Imperfect Public Monitoring with Costly Punishment: An Experimental Study," American Economic Review, American Economic Association, vol. 102(7), pages 3317-3332, December.
    20. Claudia Keser & Frans Van Winden, 2000. "Conditional Cooperation and Voluntary Contributions to Public Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 23-39, March.
    21. Bruno S. Frey & Stephan Meier, 2004. "Social Comparisons and Pro-social Behavior: Testing "Conditional Cooperation" in a Field Experiment," American Economic Review, American Economic Association, vol. 94(5), pages 1717-1722, December.
    22. Luigi Butera & Robert Metcalfe & William Morrison & Dmitry Taubinsky, 2022. "Measuring the Welfare Effects of Shame and Pride," American Economic Review, American Economic Association, vol. 112(1), pages 122-168, January.
    23. David Reinstein & Gerhard Riener, 2012. "Reputation and influence in charitable giving: an experiment," Theory and Decision, Springer, vol. 72(2), pages 221-243, February.
    24. Gee, Laura K. & Schreck, Michael J., 2018. "Do beliefs about peers matter for donation matching? Experiments in the field and laboratory," Games and Economic Behavior, Elsevier, vol. 107(C), pages 282-297.
    25. Adriaan Soetevent, 2005. "Anonymity in giving in a natural context-a field experiment in thirty churches," Framed Field Experiments 00198, The Field Experiments Website.
    26. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
    27. Steven D. Levitt & John A. List, 2007. "What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?," Journal of Economic Perspectives, American Economic Association, vol. 21(2), pages 153-174, Spring.
    28. repec:feb:framed:0087 is not listed on IDEAS
    29. Ambrus, Attila & Pathak, Parag A., 2011. "Cooperation over finite horizons: A theory and experiments," Journal of Public Economics, Elsevier, vol. 95(7), pages 500-512.
    30. Linardi, Sera & McConnell, Margaret A., 2011. "No excuses for good behavior: Volunteering and the social environment," Journal of Public Economics, Elsevier, vol. 95(5), pages 445-454.
    31. Harbaugh, William T., 1998. "What do donations buy?: A model of philanthropy based on prestige and warm glow," Journal of Public Economics, Elsevier, vol. 67(2), pages 269-284, February.
    32. Dan Ariely & Anat Bracha & Stephan Meier, 2009. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," American Economic Review, American Economic Association, vol. 99(1), pages 544-555, March.
    33. Judd B. Kessler, 2017. "Announcements of Support and Public Good Provision," American Economic Review, American Economic Association, vol. 107(12), pages 3760-3787, December.
    34. John A. List, 2011. "The Market for Charitable Giving," Journal of Economic Perspectives, American Economic Association, vol. 25(2), pages 157-180, Spring.
    35. Karlan, Dean & McConnell, Margaret A., 2014. "Hey look at me: The effect of giving circles on giving," Journal of Economic Behavior & Organization, Elsevier, vol. 106(C), pages 402-412.
    36. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    37. Rachel Croson & Jen Shang, 2008. "The impact of downward social information on contribution decisions," Experimental Economics, Springer;Economic Science Association, vol. 11(3), pages 221-233, September.
    38. Jen Shang & Rachel Croson, 2009. "A Field Experiment in Charitable Contribution: The Impact of Social Information on the Voluntary Provision of Public Goods," Economic Journal, Royal Economic Society, vol. 119(540), pages 1422-1439, October.
    39. Noah J. Goldstein & Robert B. Cialdini & Vladas Griskevicius, 2008. "A Room with a Viewpoint: Using Social Norms to Motivate Environmental Conservation in Hotels," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(3), pages 472-482, March.
    40. Lucas C. Coffman & Clayton R. Featherstone & Judd B. Kessler, 2017. "Can Social Information Affect What Job You Choose and Keep?," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 96-117, January.
    41. Martin, Richard & Randal, John, 2008. "How is donation behaviour affected by the donations of others?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 228-238, July.
    42. Stefano Dellavigna & John A. List & Ulrike Malmendier & Gautam Rao, 2017. "Voting to Tell Others," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 84(1), pages 143-181.
    43. Gerber, Alan S. & Green, Donald P. & Larimer, Christopher W., 2008. "Social Pressure and Voter Turnout: Evidence from a Large-Scale Field Experiment," American Political Science Review, Cambridge University Press, vol. 102(1), pages 33-48, February.
    44. Rege, Mari & Telle, Kjetil, 2004. "The impact of social approval and framing on cooperation in public good situations," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1625-1644, July.
    45. Emel Filiz-Ozbay & Erkut Ozbay, 2014. "Effect of an audience in public goods provision," Experimental Economics, Springer;Economic Science Association, vol. 17(2), pages 200-214, June.
    46. Anat Bracha & Lise Vesterlund, 2013. "How low can you go? Charity reporting when donations signal income and generosity," Working Papers 13-11, Federal Reserve Bank of Boston.
    47. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    48. Sugden, Robert, 1984. "Reciprocity: The Supply of Public Goods through Voluntary Contributions," Economic Journal, Royal Economic Society, vol. 94(376), pages 772-787, December.
    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. Goette, Lorenz & Tripodi, Egon, 2024. "The limits of social recognition: Experimental evidence from blood donors," Journal of Public Economics, Elsevier, vol. 231(C).
    2. Valentin Marian Antohi & Romeo Victor Ionescu & Marius Sorin Dinca & Monica Laura Zlati & Costinela Fortea, 2023. "Dynamics of the Social Security Index in the Context of the Economic Crisis in Romania," Sustainability, MDPI, vol. 15(4), pages 1-17, February.

    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. Feine, Gregor & Groh, Elke D. & von Loessl, Victor & Wetzel, Heike, 2023. "The double dividend of social information in charitable giving: Evidence from a framed field experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 103(C).
    2. David Klinowski, 2021. "Reluctant donors and their reactions to social information," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 515-535, June.
    3. Daniel Jones & Sera Linardi, 2014. "Wallflowers: Experimental Evidence of an Aversion to Standing Out," Management Science, INFORMS, vol. 60(7), pages 1757-1771, July.
    4. Drouvelis, Michalis & Marx, Benjamin M., 2022. "Can charitable appeals identify and exploit belief heterogeneity?," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 631-649.
    5. John A. List & James J. Murphy & Michael K. Price & Alexander G. James, 2019. "Do Appeals to Donor Benefits Raise More Money than Appeals to Recipient Benefits? Evidence from a Natural Field Experiment with Pick.Click.Give," NBER Working Papers 26559, National Bureau of Economic Research, Inc.
    6. Anya Samek & Roman M. Sheremeta, 2017. "Selective Recognition: How to Recognize Donors to Increase Charitable Giving," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1489-1496, July.
    7. Emel Filiz-Ozbay & Erkut Ozbay, 2014. "Effect of an audience in public goods provision," Experimental Economics, Springer;Economic Science Association, vol. 17(2), pages 200-214, June.
    8. Anya Savikhin Samek & Roman Sheremeta, 2014. "Recognizing contributors: an experiment on public goods," Experimental Economics, Springer;Economic Science Association, vol. 17(4), pages 673-690, December.
    9. Zafar, Basit, 2011. "An experimental investigation of why individuals conform," European Economic Review, Elsevier, vol. 55(6), pages 774-798, August.
    10. Michalis Drouvelis & Benjamin M. Marx, 2021. "Dimensions of donation preferences: the structure of peer and income effects," Experimental Economics, Springer;Economic Science Association, vol. 24(1), pages 274-302, March.
    11. Anya Samek & Roman M. Sheremeta, 2016. "When Identifying Contributors is Costly: An Experiment on Public Goods," Southern Economic Journal, John Wiley & Sons, vol. 82(3), pages 801-808, January.
    12. Timo Goeschl & Sara Elisa Kettner & Johannes Lohse & Christiane Schwieren, 2018. "From Social Information to Social Norms: Evidence from Two Experiments on Donation Behaviour," Games, MDPI, vol. 9(4), pages 1-25, November.
    13. Lucas C. Coffman & Clayton R. Featherstone & Judd B. Kessler, 2017. "Can Social Information Affect What Job You Choose and Keep?," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 96-117, January.
    14. Lorenz Götte & Egon Tripodi, 2022. "Social Recognition: Experimental Evidence from Blood Donors," CESifo Working Paper Series 9719, CESifo.
    15. Bolton, Gary & Dimant, Eugen & Schmidt, Ulrich, 2021. "Observability and social image: On the robustness and fragility of reciprocity," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 946-964.
    16. Cueva, Carlos & Dessi, Roberta, 2012. "Charitable Giving, Self-Image and Personality," TSE Working Papers 12-342, Toulouse School of Economics (TSE).
    17. Edwards, James T. & List, John A., 2014. "Toward an understanding of why suggestions work in charitable fundraising: Theory and evidence from a natural field experiment," Journal of Public Economics, Elsevier, vol. 114(C), pages 1-13.
    18. Astrid Dannenberg & Olof Johansson‐Stenman & Heike Wetzel, 2022. "Status for the good guys: An experiment on charitable giving," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 721-740, April.
    19. Krieg, Justin & Samek, Anya, 2017. "When charities compete: A laboratory experiment with simultaneous public goods," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 66(C), pages 40-57.
    20. Jingping Li & Yohanes E. Riyanto, 2017. "Category Reporting In Charitable Giving: An Experimental Analysis," Economic Inquiry, Western Economic Association International, vol. 55(1), pages 397-408, January.

    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:eee:jeborg:v:192:y:2021:i:c:p:248-267. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    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.