IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Channels of Peer Effects and Guilt Aversion in Crime: Experimental and Empirical Evidence from Bangladesh

  • Masahiro Shoji

    ( Faculty of Economics, Seijo University)

   This study empirically disentangles the channels of peer effects in crime through an experiment conducted in rural Bangladesh. The first part of this study assumes that individuals exhibit guilt aversion, which predicts the peer effects via guilt sensitivity and belief. By incorporating peer effects in a take-away game, the criminal player is informed about the victim player's belief only in the treatment group, so that the peer effects in the treatment group are driven only through guilt sensitivity. The experime ntal results suggest that peer effects affect and bring about changes in belief. The second part elicits guilt sensitivity to test guilt aversion. I find robust supporting evidence for my results, and reject the alternatives such as pure altruism and trustw orthiness. Finally, external validity is also confirmed: the criminal behaviour of subjects in the experiment is correlated with their attitude towards illegal activities in the real world, and individuals are less likely to suffer from property crime in villages with a higher guilt sensitivity neighbourhood.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2014/2014cf923.pdf
Download Restriction: no

Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-923.

as
in new window

Length: 39 pages
Date of creation: Feb 2014
Date of revision:
Handle: RePEc:tky:fseres:2014cf923
Contact details of provider: Postal:
Hongo 7-3-1, Bunkyo-ku, Tokyo 113-0033

Phone: +81-3-5841-5644
Fax: +81-3-5841-8294
Web page: http://www.cirje.e.u-tokyo.ac.jp/index.html
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Patrick Bayer & Randi Hjalmarsson & David Pozen, 2007. "Building Criminal Capital behind Bars: Peer Effects in Juvenile Corrections," NBER Working Papers 12932, National Bureau of Economic Research, Inc.
  2. Christoph Vanberg, 2008. "Why Do People Keep Their Promises? An Experimental Test of Two Explanations -super-1," Econometrica, Econometric Society, vol. 76(6), pages 1467-1480, November.
  3. Urs Fischbacher & Simon Gaechter, 2008. "Social Preferences, Beliefs, and the Dynamics of Free Riding in Public Good Experiments," CESifo Working Paper Series 2491, CESifo Group Munich.
  4. Miettinen, T. & Suetens, S., 2008. "Communication and Guilt in a Prisoner's Dilemma," Discussion Paper 2008-12, Tilburg University, Center for Economic Research.
  5. Eichenberger, Reiner & Oberholzer-Gee, Felix, 1998. " Rational Moralists: The Role of Fairness in Democratic Economic Politics," Public Choice, Springer, vol. 94(1-2), pages 191-210, January.
  6. Charles Bellemare & Alexander Sebald & Martin Strobel, 2011. "Measuring the willingness to pay to avoid guilt: estimation using equilibrium and stated belief models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(3), pages 437-453, 04.
  7. Ellingsen, Tore & Johannesson, Magnus & Tjøtta, Sigve & Torsvik, Gaute, 2007. "Testing Guilt Aversion," SSE/EFI Working Paper Series in Economics and Finance 683, Stockholm School of Economics.
  8. Gaviria, Alejandro & Pages, Carmen, 2002. "Patterns of crime victimization in Latin American cities," Journal of Development Economics, Elsevier, vol. 67(1), pages 181-203, February.
  9. Patacchini, Eleonora & Zenou, Yves, 2009. "Juvenile Delinquency and Conformism," CEPR Discussion Papers 7565, C.E.P.R. Discussion Papers.
  10. Lindbeck, Assar, 1997. "Incentives and Social Norms in Household Behavior," American Economic Review, American Economic Association, vol. 87(2), pages 370-77, May.
  11. Charness, Gary B & Dufwenberg, Martin, 2006. "Promises & Partnership," University of California at Santa Barbara, Economics Working Paper Series qt0127h86v, Department of Economics, UC Santa Barbara.
  12. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," NBER Working Papers 7580, National Bureau of Economic Research, Inc.
  13. Iris Bohnet & Richard Zeckhauser, 2004. "Social comparisons in ultimatum bargaining," CREMA Working Paper Series 2004-08, Center for Research in Economics, Management and the Arts (CREMA).
  14. Assar Lindbeck & Sten Nyberg & Jörgen W. Weibull, 1999. "Social Norms and Economic Incentives in the Welfare State," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 1-35.
  15. James Andreoni, 2007. "Social Image and the 50-50 Norm: A Theoretical and Experimental Analysis of Audience Effects," Levine's Bibliography 122247000000001459, UCLA Department of Economics.
  16. Sliwka, Dirk, 2006. "Trust as a Signal of a Social Norm and the Hidden Costs of Incentive Schemes," IZA Discussion Papers 2293, Institute for the Study of Labor (IZA).
  17. Franziska Barmettler & Ernst Fehr & Christian Zehnder, 2011. "Big experimenter is watching you! Anonymity and prosocial behavior in the laboratory," ECON - Working Papers 027, Department of Economics - University of Zurich.
  18. Jens Ludwig & Greg J. Duncan & Paul Hirschfield, 2001. "Urban Poverty and Juvenile Crime: Evidence from a Randomized Housing-Mobility Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 116(2), pages 655-679.
  19. Gary Charness & Martin Dufwenberg, 2004. "Promises and Partnership," Levine's Bibliography 122247000000000001, UCLA Department of Economics.
  20. 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.
  21. Sah, R.K., 1990. "Social Osmosis And Patterns Of Crime: A Dynamic Economic Analysis," Papers 609, Yale - Economic Growth Center.
  22. Falk, Armin & Fischbacher, Urs, 2002. ""Crime" in the lab-detecting social interaction," European Economic Review, Elsevier, vol. 46(4-5), pages 859-869, May.
  23. Charness, Gary & Dufwenberg, Martin, 2010. "Bare promises: An experiment," Economics Letters, Elsevier, vol. 107(2), pages 281-283, May.
  24. David Amdur & Ethan Schmick, 2013. "Does the direct-response method induce guilt aversion in a trust game?," Economics Bulletin, AccessEcon, vol. 33(1), pages 687-693.
  25. Barslund, Mikkel & Rand, John & Tarp, Finn & Chiconela, Jacinto, 2007. "Understanding Victimization: The Case of Mozambique," World Development, Elsevier, vol. 35(7), pages 1237-1258, July.
  26. Pierpaolo Battigalli & Martin Dufwenberg, 2007. "Guilt in Games," American Economic Review, American Economic Association, vol. 97(2), pages 170-176, May.
  27. Jeffrey R. Kling & Jens Ludwig, 2006. "Is Crime Contagious?," Working Papers 889, Princeton University, Department of Economics, Industrial Relations Section..
  28. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. "Why Is Rent-Seeking So Costly to Growth?," American Economic Review, American Economic Association, vol. 83(2), pages 409-14, May.
  29. Edward L. Glaeser & Bruce Sacerdote & José A. Scheinkman, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 507-548.
  30. Jordi Brandts & Gary Charness, 2011. "The strategy versus the direct-response method: a first survey of experimental comparisons," Experimental Economics, Springer, vol. 14(3), pages 375-398, September.
  31. Eric Rasmusen, 1995. "``Stigma and Self-Fulfilling Expectations of Criminality''," Law and Economics 9506001, EconWPA.
  32. repec:oup:restud:v:60:y:1993:i:3:p:531-42 is not listed on IDEAS
  33. Beck, Adrian & Kerschbamer, Rudolf & Qiu, Jianying & Sutter, Matthias, 2013. "Shaping beliefs in experimental markets for expert services: Guilt aversion and the impact of promises and money-burning options," Games and Economic Behavior, Elsevier, vol. 81(C), pages 145-164.
  34. Battigalli, Pierpaolo & Charness, Gary & Dufwenberg, Martin, 2013. "Deception: The role of guilt," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 227-232.
  35. Timothy N. Cason & Vai-Lam Mui, 1998. "Social Influence in the Sequential Dictator Game," Monash Economics Working Papers archive-37, Monash University, Department of Economics.
  36. Fafchamps, Marcel & Moser, Christine, 2004. "Crime, Isolation, and Law Enforcement," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  37. Martin Dufwenberg & Simon Gaechter & Heike Hennig-Schmidt, 2010. "The Framing of Games and the Psychology of Play," Bonn Econ Discussion Papers bgse15_2010, University of Bonn, Germany.
  38. Zafar, Basit, 2011. "An experimental investigation of why individuals conform," European Economic Review, Elsevier, vol. 55(6), pages 774-798, August.
  39. Lederman, Daniel & Loayza, Norman & Menendez, Ana Maria, 2002. "Violent Crime: Does Social Capital Matter?," Economic Development and Cultural Change, University of Chicago Press, vol. 50(3), pages 509-39, April.
  40. Ernst Fehr & Karla Hoff, 2011. "Introduction: Tastes, Castes and Culture: the Influence of Society on Preferences," Economic Journal, Royal Economic Society, vol. 121(556), pages F396-F412, November.
  41. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  42. Gordon Dahl & Stefano DellaVigna, 2008. "Does Movie Violence Increase Violent Crime?," NBER Working Papers 13718, National Bureau of Economic Research, Inc.
  43. Patacchini, Eleonora & Zenou, Yves, 2008. "The strength of weak ties in crime," European Economic Review, Elsevier, vol. 52(2), pages 209-236, February.
  44. Reuben, Ernesto & Sapienza, Paola & Zingales, Luigi, 2008. "Is mistrust self-fulfilling?," MPRA Paper 10653, University Library of Munich, Germany.
  45. Ellingsen, Tore & Johannesson, Magnus & Mollerstrom, Johanna & Munkhammar, Sara, 2012. "Social framing effects: Preferences or beliefs?," Games and Economic Behavior, Elsevier, vol. 76(1), pages 117-130.
  46. Patricia Funk, 2005. "Governmental Action, Social Norms, and Criminal Behavior," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 161(3), pages 522-, September.
  47. Francesco Guala & Luigi Mittone, 2005. "Experiments in economics: External validity and the robustness of phenomena," Journal of Economic Methodology, Taylor & Francis Journals, vol. 12(4), pages 495-515.
  48. Loewenstein, George, 1999. "Experimental Economics from the Vantage-Point of Behavioural Economics," Economic Journal, Royal Economic Society, vol. 109(453), pages F23-34, February.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2014cf923. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.