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Norm Uncertainty and Voluntary Payments in the Field

Author

Listed:
  • Christoph Feldhaus

    (Department of Economics, University of Cologne, 50923 Cologne, Germany)

  • Tassilo Sobotta

    (Department of Economics and Business, University of Halle-Wittenberg, 06099 Halle, Germany)

  • Peter Werner

    (Department of Economics (Section AE1), Maastricht University, 6200 MD Maastricht, Netherlands)

Abstract

We investigate behavioral reactions toward exogenous changes of implicit norm-relevant information in a natural field setting where customers are free to choose if and how much to pay for a service. Customers’ voluntary payments are significantly affected by subtle information cues: cues that signal a high rather than a low payment norm increase payments by some 27%. Consistent with the conjecture that this effect is in large part driven by customers’ uncertainty about the actual norm, responses are mitigated when explicit norm-relevant information is provided. Additional treatments suggest that the reactions to the cues are not driven by mere saliency but by the information deduced from the cues in the presence of uncertainty.

Suggested Citation

  • Christoph Feldhaus & Tassilo Sobotta & Peter Werner, 2019. "Norm Uncertainty and Voluntary Payments in the Field," Management Science, INFORMS, vol. 65(4), pages 1855-1866, April.
  • Handle: RePEc:inm:ormnsc:v:65:y:2019:i:4:p:1855-1866
    DOI: 10.1287/mnsc.2017.2937
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