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Social Norms as a Social Exchange

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  • Simon Gächter
  • Ernst Fehr

Abstract

Social Norms are a pervasive phenomenon in social and economic life. They have important economic consequences and constitute powerful social constraints on individual behaviour beyond the legal constraints and the market constraints usually considered by economists. This paper presents a simple theory of social norms that is based on the social exchange approach as developed by e. g. HOMANS, BLAU and more recently by HOLLÄNDER. The sanctioning of deviations from the norm by social (dis)approval is at the heart of this approach. The paper also provides an experimental test of the theory. The empirical results indicate that social exchanges are not capable of generating behavioural effects among complete strangers. Yet, with some minimal social familiarity among subjects the opportunity for social exchanges gives rise to a significant increase in voluntary cooperation and, thus, norm governed behaviour.

Suggested Citation

  • Simon Gächter & Ernst Fehr, 1997. "Social Norms as a Social Exchange," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 133(II), pages 275-292, June.
    • Handle: RePEc:ses:arsjes:1997-ii-10
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    References listed on IDEAS

    as
    1. Ernst Fehr & Simon Gachter & Georg Kirchsteiger, 2001. "Reciprocity as a Contract Enforcement Device," Levine's Working Paper Archive 563824000000000143, David K. Levine.
    2. Simon Gächter & Ernst Fehr & Christiane Kment, 1996. "Does Social Exchange Increase Voluntary Cooperation?," Kyklos, Wiley Blackwell, vol. 49(4), pages 541-554, November.
    3. Kandel, Eugene & Lazear, Edward P, 1992. "Peer Pressure and Partnerships," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 801-817, August.
    4. George A. Akerlof, 1980. "A Theory of Social Custom, of which Unemployment may be One Consequence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 749-775.
    5. Gachter, Simon & Fehr, Ernst & Kment, Christiane, 1996. "Does Social Exchange Increase Voluntary Cooperation?," Kyklos, Wiley Blackwell, vol. 49(4), pages 541-554.
    6. Alison L. Booth, 1985. "The Free Rider Problem and a Social Custom Model of Trade Union Membership," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 253-261.
    7. Corneo, Giacomo, 1995. "Social custom, management opposition, and trade union membership," European Economic Review, Elsevier, vol. 39(2), pages 275-292, February.
    8. Robin Naylor, 1989. "Strikes, Free Riders, and Social Customs," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 771-785.
    9. Hollander, Heinz, 1990. "A Social Exchange Approach to Voluntary Cooperation," American Economic Review, American Economic Association, vol. 80(5), pages 1157-1167, December.
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    2. D. Friedman & W. Trockel & S. Novkovic & Patricia Apps & A. Falk & C. Doyle, 1997. "Book reviews," Journal of Economics, Springer, vol. 65(3), pages 311-327, October.

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