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Reference Group Behaviour and Economic Incentives: A Remark


  • Schlicht, Ekkehart


People tend, in many ways, to behave like the others they see around them. This note´shows that such reference group behavior tends to reinforce incentives (economic or other) that influence individuals directly only marginally. The workings or such incentives is augmented what might be called a "social multiplier."

Suggested Citation

  • Schlicht, Ekkehart, 1981. "Reference Group Behaviour and Economic Incentives: A Remark," Munich Reprints in Economics 4183, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:4183

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    References listed on IDEAS

    1. Perelman, Sergio & Pestieau, Pierre, 1988. "Technical performance in public enterprises : A comparative study of railways and postal services," European Economic Review, Elsevier, vol. 32(2-3), pages 432-441, March.
    2. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
    3. Henderson, P D, 1977. "Two British Errors: Their Probable Size and Some Possible Lessons," Oxford Economic Papers, Oxford University Press, vol. 29(2), pages 159-205, July.
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    Cited by:

    1. Galbiati, Roberto & Zanella, Giulio, 2012. "The tax evasion social multiplier: Evidence from Italy," Journal of Public Economics, Elsevier, vol. 96(5), pages 485-494.
    2. Schlicht, Ekkehart, 2014. "Two Additional Remarks on Conformism," Discussion Papers in Economics 18376, University of Munich, Department of Economics.
    3. Schlicht, Ekkehart, 1981. "Training Costs and Wage Differentials in the Theory of Job Competition," Munich Reprints in Economics 1347, University of Munich, Department of Economics.
    4. Kostov, Philip & Lingard, John, 2005. "Disentangling the Social and Economic Dimensions of Agricultural Behaviour: What Role for Institutions and Social Capital?," 94th Seminar, April 9-10, 2005, Ashford, UK 24436, European Association of Agricultural Economists.
    5. Kostov, Philip & Davidova, Sophia & Bailey, Alastair, 2016. "Effect of family labour on output of farms in selected EU Member States: A non-parametric quantile regression approach," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236358, Agricultural Economics Society.

    More about this item


    reference group; incentives; conformity; social multiplier; aggregation;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs


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