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Are Social Preference Related to Market Perfomance

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  • Andreas Leibbrandt

Abstract

This paper combines experimental with field data from professional sellers to study whether social preferences are related to performance in natural markets. The data show that sellers who are more pro-social in a laboratory experiment are also more successful in natural markets: they achieve higher prices, have superior trade relations and better abilities to signal trustworthiness to buyers. These findings suggest that social preferences play a significant role for outcomes in natural markets.

Suggested Citation

  • Andreas Leibbrandt, 2011. "Are Social Preference Related to Market Perfomance," Artefactual Field Experiments 00582, The Field Experiments Website.
    • Handle: RePEc:feb:artefa:00582
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    References listed on IDEAS

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    Cited by:

    1. Fiala, Nathan, 2014. "Skills in the Marketplace: Market Equilibrium, Personality and Ability in a Field-Based Experiment," Working Papers 30, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    2. Matteo M. Galizzi & Daniel Navarro-Martinez, 2019. "On the External Validity of Social Preference Games: A Systematic Lab-Field Study," Management Science, INFORMS, vol. 65(3), pages 976-1002, March.
    3. Yann Algan & Yochai Benkler & Mayo Fuster Morell & Jérôme Hergueux, 2013. "Cooperation in Peer-Production Economy: Experimental Evidence from Wikipedia," SciencePo Working papers Main hal-03460797, HAL.
    4. Armin Falk & Fabian Kosse & Pia Pinger & Hannah Schildberg-Hörisch & Thomas Deckers, 2021. "Socioeconomic Status and Inequalities in Children’s IQ and Economic Preferences," Journal of Political Economy, University of Chicago Press, vol. 129(9), pages 2504-2545.
    5. repec:cup:judgdm:v:15:y:2020:i:3:p:330-345 is not listed on IDEAS
    6. Deversi, Marvin & Kocher, Martin G. & Schwieren, Christiane, 2020. "Cooperation in a Company: A Large-Scale Experiment," Rationality and Competition Discussion Paper Series 233, CRC TRR 190 Rationality and Competition.
    7. Yann Algan & Yochai Benkler & Mayo Fuster Morell & Jerome Hergueux, 2013. "Cooperation in Peer-Production Economy: Experimental Evidence from Wikipedia," Sciences Po publications info:hdl:2441/5ulf84sluc9, Sciences Po.
    8. Loukas Balafoutas & Mongoljin Batsaikhan & Matthias Sutter, 2021. "Competitiveness of Entrepreneurs and Salaried Workers," ECONtribute Discussion Papers Series 069, University of Bonn and University of Cologne, Germany.
    9. Fiala, Nathan, 2015. "Skills in the marketplace: Market efficiency, social orientation, and ability in a field-based experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 120(C), pages 174-188.
    10. Tessa Haesevoets & Alain Van Hiel & Kim Dierckx & Chris Reinders Folmer, 2020. "Do multiple-trial games better reflect prosocial behavior than single-trial games?," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(3), pages 330-345, May.
    11. Michal Bauer & Julie Chytilová & Barbara Pertold-Gebicka, 2014. "Parental background and other-regarding preferences in children," Experimental Economics, Springer;Economic Science Association, vol. 17(1), pages 24-46, March.
    12. repec:hal:spmain:info:hdl:2441/5ulf84sluc9vlb5mrjr32mfetg is not listed on IDEAS
    13. Antonio M. Espin & Francisco Reyes-Pereira & Luis F. Ciria, 2017. "Organizations should know their people: A behavioral economics approach," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(S), pages 41-48, November.
    14. Roland Cheo & Kainan Huang & Jingping Li, 2023. "Group cooperation of village officials in Chinese rural resettlement: A lab in the field," Contemporary Economic Policy, Western Economic Association International, vol. 41(2), pages 388-407, April.
    15. John Rand & Paula Castro Rodriguez & Finn Tarp & Neda Trifković, 2019. "Key behavioural characteristics of small-business owners: A lab-in-the-field experiment in Myanmar," WIDER Working Paper Series wp-2019-79, World Institute for Development Economic Research (UNU-WIDER).
    16. Mariya Veleva, 2017. ""Liquid Society": the Decline of Values and its Reflection on Contemporary Leadership," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, issue 1, pages 148-157, November.

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other

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