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Living in Two Neighborhoods: Social Interactions in the Lab

Author

Listed:
  • Falk, Armin

    () (briq, University of Bonn)

  • Fischbacher, Urs

    () (University of Konstanz)

  • Gächter, Simon

    () (University of Nottingham)

Abstract

Field evidence suggests that people belonging to the same group often behave similarly, i.e., behaviour exhibits social interaction effects. We conduct an experiment that avoids the identification problem present in the field. Our novel design feature is that each subject simultaneously is a member of two randomly assigned and identical groups where only members (‘neighbours’) are different. In both groups subjects contribute to a public good. We speak of social interactions if the same subject at the same time makes group-specific contributions that depend on their respective neighbours’ contribution. We find that a majority of subjects exhibits social interaction effects.

Suggested Citation

  • Falk, Armin & Fischbacher, Urs & Gächter, Simon, 2004. "Living in Two Neighborhoods: Social Interactions in the Lab," IZA Discussion Papers 1381, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1381
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    References listed on IDEAS

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    Cited by:

    1. C. Monica Capra & Lei Li, 2006. "Conformity in Contribution Games: Gender and Group Effects," Emory Economics 0601, Department of Economics, Emory University (Atlanta).
    2. Ibanez, Marcela & Martinsson, Peter, 2008. "Can we do policy recommendations from a framed field experiment? The case of coca cultivation in Colombia," Working Papers in Economics 306, University of Gothenburg, Department of Economics.
    3. 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.
    4. Siegfried Berninghaus & Sven Fischer & Werner Güth, 2006. "Social Networks and Employment - An Experimental Analysis," Papers on Strategic Interaction 2006-31, Max Planck Institute of Economics, Strategic Interaction Group.
    5. Berninghaus, Siegfried K. & Fischer, Sven & Gueth, Werner, 2006. "Do Social Networks Inspire Employment? - An Experimental Analysis -," Sonderforschungsbereich 504 Publications 06-11, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.

    More about this item

    Keywords

    experiments; social interactions; identification;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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