IDEAS home Printed from https://ideas.repec.org/a/spr/decfin/v41y2018i2d10.1007_s10203-018-0216-1.html
   My bibliography  Save this article

Reference group influence on binary choices dynamics

Author

Listed:
  • Arianna Dal Forno

    (University of Molise)

  • Ugo Merlone

    (University of Torino)

Abstract

The recent literature has analyzed binary choices dynamics providing interesting results. Most of these contributions consider interactions within a single group. Nevertheless, in some situations the interaction takes place not only within a single group but also between different groups. In this paper, we investigate the choice dynamics when considering two populations where one serves as a reference group. Considering this influence effect enriches the dynamics. Although the structurally stable resulting dynamics are attracting cycles only, with any positive integer period, the reference group makes the dynamics of the influenced population much more complex. We considered both the possibility that the reference group has the same or the opposite attitude toward the distribution over the choices. We show how the dynamics and the bifurcation structure are modified under the influence of the reference group. Our results illustrate how the propensity to switch choices in the reference groups may, indirectly, affect choices in the first group.

Suggested Citation

  • Arianna Dal Forno & Ugo Merlone, 2018. "Reference group influence on binary choices dynamics," Decisions in Economics and Finance, Springer;Associazione per la Matematica, vol. 41(2), pages 427-445, November.
    • Handle: RePEc:spr:decfin:v:41:y:2018:i:2:d:10.1007_s10203-018-0216-1
    DOI: 10.1007/s10203-018-0216-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10203-018-0216-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10203-018-0216-1?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. John A. List & David Lucking-Reiley, 2002. "The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 215-233, February.
    2. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
    3. Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-411, May.
    4. 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.
    5. Bischi, Gian Italo & Merlone, Ugo & Pruscini, Eros, 2018. "Evolutionary dynamics in club goods binary games," Journal of Economic Dynamics and Control, Elsevier, vol. 91(C), pages 104-119.
    6. Thomas C. Schelling, 1973. "Hockey Helmets, Concealed Weapons, and Daylight Saving," Journal of Conflict Resolution, Peace Science Society (International), vol. 17(3), pages 381-428, September.
    7. W. Brian Arthur, 1994. "Inductive Reasoning, Bounded Rationality and the Bar Problem," Working Papers 94-03-014, Santa Fe Institute.
    8. Genevieve Giuliano & Dhiraj Narayan, 2003. "Another Look at Travel Patterns and Urban Form: The US and Great Britain," Urban Studies, Urban Studies Journal Limited, vol. 40(11), pages 2295-2312, October.
    9. Andreoni, James & Scholz, John Karl, 1998. "An Econometric Analysis of Charitable Giving with Interdependent Preferences," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 410-428, July.
    10. Bearden, William O & Etzel, Michael J, 1982. "Reference Group Influence on Product and Brand Purchase Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 183-194, September.
    11. Bruno Frey & Stephan Meier, 2004. "In a field experiment," Natural Field Experiments 00243, The Field Experiments Website.
    12. Gian Italo Bischi & Ugo Merlone, 2017. "Evolutionary minority games with memory," Journal of Evolutionary Economics, Springer, vol. 27(5), pages 859-875, November.
    Full references (including those not matched with items on IDEAS)

    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. Jipeng Zhang & Huan Xie, 2019. "Hierarchy Leadership and Social Distance in Charitable Giving," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 433-458, October.
    2. Philipp Doerrenberg & Andreas Peichl, 2022. "Tax Morale and the Role of Social Norms and Reciprocity - Evidence from a Randomized Survey Experiment," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 78(1-2), pages 44-86.
    3. Gächter, Simon & Renner, Elke, 2018. "Leaders as role models and ‘belief managers’ in social dilemmas," Journal of Economic Behavior & Organization, Elsevier, vol. 154(C), pages 321-334.
    4. Philipp Dörrenberg & Christoph Feldhaus, 2022. "How Does Group-Decision Making Affect Subsequent Individual Behavior?," CESifo Working Paper Series 9513, CESifo.
    5. Giovanna d’Adda, 2012. "Leadership and influence: Evidence from an artefactual field experiment on local public good provision," ECON - Working Papers 059, Department of Economics - University of Zurich.
    6. David Klinowski, 2021. "Reluctant donors and their reactions to social information," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 515-535, June.
    7. Benediktson, Mathias Nylandsted, 2018. "Investigating the U-Shaped Charitable Giving Profile Using Register-Based Data," DaCHE discussion papers 2018:1, University of Southern Denmark, Dache - Danish Centre for Health Economics.
    8. Carlsson, Fredrik & Johansson-Stenman, Olof & Nam, Pham Khanh, 2014. "Social preferences are stable over long periods of time," Journal of Public Economics, Elsevier, vol. 117(C), pages 104-114.
    9. Peter Katuščák & Tomáš Miklánek, 2023. "What drives conditional cooperation in public good games?," Experimental Economics, Springer;Economic Science Association, vol. 26(2), pages 435-467, April.
    10. Jan Stoop & Charles N. Noussair & Daan van Soest, 2012. "From the Lab to the Field: Cooperation among Fishermen," Journal of Political Economy, University of Chicago Press, vol. 120(6), pages 1027-1056.
    11. Simon Gaechter & Elke Renner, 2014. "Leaders as Role Models for the Voluntary Provision of Public Goods," Discussion Papers 2014-11, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    12. Ananish Chaudhuri, 2011. "Sustaining cooperation in laboratory public goods experiments: a selective survey of the literature," Experimental Economics, Springer;Economic Science Association, vol. 14(1), pages 47-83, March.
    13. Krasteva, Silvana & Saboury, Piruz, 2021. "Informative fundraising: The signaling value of seed money and matching gifts," Journal of Public Economics, Elsevier, vol. 203(C).
    14. Dean Karlan & John A. List, 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," American Economic Review, American Economic Association, vol. 97(5), pages 1774-1793, December.
    15. Deck, Cary & Murphy, James J., 2019. "Donors change both their level and pattern of giving in response to contests among charities," European Economic Review, Elsevier, vol. 112(C), pages 91-106.
    16. Leibbrandt, Andreas & Lynham, John, 2018. "Does the allocation of property rights matter in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 201-217.
    17. Simon Gächter & Daniele Nosenzo & Martin Sefton, 2013. "Peer Effects In Pro-Social Behavior: Social Norms Or Social Preferences?," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 548-573, June.
    18. 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.
    19. Huck, Steffen & Rasul, Imran, 2011. "Matched fundraising: Evidence from a natural field experiment," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 351-362, June.
    20. Matilde Giaccherini & Giovanni Ponti, 2018. "Preference Based Subjective Beliefs," Games, MDPI, vol. 9(3), pages 1-12, July.

    More about this item

    Keywords

    Discontinuous 2-dim maps; Border-collision bifurcations; Periodicity tongues; Influence; Reference group; Binary choices;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    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:spr:decfin:v:41:y:2018:i:2:d:10.1007_s10203-018-0216-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.