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Who Cares for Social Image? Interactions between Intrinsic Motivation and Social Image Concerns

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  • Jana Friedrichsen
  • Dirk Engelmann

Abstract

We consider the interaction of intrinsic motivation and concerns for social approval in a laboratory experiment. We elicit a proxy for Fairtrade preferences before the experiment in which we elicit willingness to pay for conventional and Fairtrade chocolate. Treatments vary whether this can be signaled to other participants. Subjects concerned with social approval should state a higher Fairtrade premium when signaling is possible. We find that this is the case, but interestingly only for participants who are not intrinsically motivated to buy Fairtrade. This has important implications both for crowding out of intrinsic motivation through incentives and for producer choices.

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  • Jana Friedrichsen & Dirk Engelmann, 2013. "Who Cares for Social Image? Interactions between Intrinsic Motivation and Social Image Concerns," CESifo Working Paper Series 4514, CESifo.
    • Handle: RePEc:ces:ceswps:_4514
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    Cited by:

    1. Jannis Engel & Nora Szech, 2020. "A little good is good enough: Ethical consumption, cheap excuses, and moral self-licensing," PLOS ONE, Public Library of Science, vol. 15(1), pages 1-19, January.
    2. Goytom Abraha Kahsay & Laura Mørch Andersen & Lars Gårn Hansen, 2014. "Price reactions when consumers are concerned about pro-social reputation," IFRO Working Paper 2014/09, University of Copenhagen, Department of Food and Resource Economics.
    3. Filippin, Antonio & Fiorio, Carlo V. & Viviano, Eliana, 2013. "The effect of tax enforcement on tax morale," European Journal of Political Economy, Elsevier, vol. 32(C), pages 320-331.
    4. Friedrichsen, Jana, 2013. "Image concerns and the provision of quality," Discussion Papers, Research Unit: Market Behavior SP II 2013-211, WZB Berlin Social Science Center.
    5. Rainer Michael Rilke, 2017. "On the duty to give (and not to take): An experiment on moralistic punishment," Journal of Business Economics, Springer, vol. 87(9), pages 1129-1150, December.
    6. Alistair Munro & Marieta Valente, 2016. "Green Goods: Are They Good or Bad News for the Environment? Evidence from a Laboratory Experiment on Impure Public Goods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(2), pages 317-335, October.
    7. Marieta Valente, 2015. "Ethical Differentiation and Consumption in an Incentivized Market Experiment," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(1), pages 51-69, August.
    8. Friedrichsen, Jana, 2016. "Signals sell: Designing a product line when consumers have social image concerns," Discussion Papers, Research Unit: Market Behavior SP II 2016-202, WZB Berlin Social Science Center.

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    More about this item

    Keywords

    image concerns; Fairtrade; ethical consumption; crowding out; experiments;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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