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My Peers are Watching me - Audience and Peer Effects in a Pay-What-You-Want Context

Author

Listed:
  • Elisa Hofmann

    (Friedrich Schiller University Jena)

  • Michael E. Fiagbenu

    (Friedrich Schiller University Jena)

  • Asri Özgümüs

    (Georg-August University Göttingen)

  • Amir M. Tahamtan

    (Sharif University of Technology, Teheran)

  • Tobias Regner

    (Friedrich Schiller University Jena)

Abstract

We experimentally investigate two relevant drivers of payments in voluntary settings: the ef- fects of audience and peers. Our 2×2 between-subjects design varies the interpersonal closeness of buyers (Strangers vs. Peers) and the observability of their payments to other buyers (Anonymous vs. Public). This allows us to enrich the research on both drivers and identify whether payment observability (audience effect), the presence of known others (peer effect), or the combination of both affects voluntary payments. Payments are, on average, higher if they are made public and if buyers feel close to each other. While the effect of audience and peers on payments is additive in total, we do not find an interaction effect, if payments are observed by peers.

Suggested Citation

  • Elisa Hofmann & Michael E. Fiagbenu & Asri Özgümüs & Amir M. Tahamtan & Tobias Regner, 2018. "My Peers are Watching me - Audience and Peer Effects in a Pay-What-You-Want Context," Jena Economics Research Papers 2018-019, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2018-019
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    References listed on IDEAS

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    Cited by:

    1. Elisa Hofmann, 2020. "The power of close relationships and audiences: Interpersonal closeness and payment observability as determinants of voluntary payments," Jena Economics Research Papers 2020-016, Friedrich-Schiller-University Jena.

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    More about this item

    Keywords

    social preferences; experiments; social image concerns; Pay-What-You-Want; interpersonal closeness;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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