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In vino veritas: Theory and evidence on social drinking

  • Haucap, Justus
  • Herr, Annika
  • Frank, Björn

It is a persistent phenomenon in many societies that a large proportion of alcohol consumption takes place in company of other people. While the phenomenon of social or public drinking is well discussed in disciplines as social psychology and anthropology, economists have paid little attention to the social environment of alcohol consumption. This paper tries to close this gap and explains social drinking as a trust facilitating device. Since alcohol consumption tends to make some people (unwillingly) tell the truth, social drinking can eventually serve as a signaling device in social contact games. Empirical support is obtained from a cross-country analysis of trust and a newly developed index of moderate alcohol consumption.

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Paper provided by Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE) in its series DICE Discussion Papers with number 37.

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Date of creation: 2011
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Handle: RePEc:zbw:dicedp:37
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  3. Haucap, Justus & Heimeshoff, Ulrich & Karaçuka, Mehmet, 2010. "Competition in the Turkish mobile telecommunications market: Price elasticities and network substitution," DICE Discussion Papers 12, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
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  6. Duso, Tomaso & Gugler, Klaus & Yurtoglu, Burcin B., 2006. "How Effective is European Merger Control?," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 153, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  7. Ralf Dewenter & Justus Haucap & Tobias Wenzel, 2012. "On File Sharing With Indirect Network Effects Between Concert Ticket Sales and Music Recordings," Journal of Media Economics, Taylor & Francis Journals, vol. 25(3), pages 168-178, September.
  8. Haucap, Justus & Heimeshoff, Ulrich & Schultz, Luis Manuel, 2010. "Legal and illegal cartels in Germany between 1958 and 2004," DICE Discussion Papers 08, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  9. Nicolas R. Ziebarth & Markus M. Grabka, 2008. "In Vino Pecunia?: The Association between Beverage-Specific Drinking Behavior and Wages," SOEPpapers on Multidisciplinary Panel Data Research 93, DIW Berlin, The German Socio-Economic Panel (SOEP).
  10. von Schlippenbach, Vanessa & Wey, Christian, 2011. "One-stop shopping behavior, buyer power, and upstream merger incentives," DICE Discussion Papers 27, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  11. Jeitschko, Thomas D. & Normann, Hans-Theo, 2012. "Signaling in deterministic and stochastic settings," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 39-55.
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  14. Christin, Clémence & Nicolaï, Jean-Philippe & Pouyet, Jerome, 2011. "The Role of Abatement Technologies for Allocating Free Allowances," CEPREMAP Working Papers (Docweb) 1109, CEPREMAP.
  15. Haucap, Justus & Heimeshoff, Ulrich, 2011. "Consumer behavior towards on-net/off-net price differentiation," DICE Discussion Papers 16, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  16. Stefan D. Haigner & Stefan Jenewein & Hans-Christian Müller & Florian Wakolbinger, 2010. "The first shall be last: Serial position effects in the case contestants evaluate each other," Economics Bulletin, AccessEcon, vol. 30(4), pages 3170-3176.
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  21. Karaçuka, Mehmet & Catik, A. Nazif, 2011. "A spatial approach to measure productivity spillovers of foreign affiliated firms in Turkish manufacturing industries," DICE Discussion Papers 21, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  22. Hans-Theo Normann & Brian Wallace, 2012. "The impact of the termination rule on cooperation in a prisoner’s dilemma experiment," International Journal of Game Theory, Springer, vol. 41(3), pages 707-718, August.
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  25. Herr, Annika, 2010. "Quality and welfare in a mixed duopoly with regulated prices: The case of a public and a private hospital," DICE Discussion Papers 07, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
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  29. Heinz, Matthias & Juranek, Steffen & Rau, Holger A., 2012. "Do women behave more reciprocally than men? Gender differences in real effort dictator games," Journal of Economic Behavior & Organization, Elsevier, vol. 83(1), pages 105-110.
  30. Hauck, Achim & Neyer, Ulrike & Vieten, Thomas, 2011. "Reestablishing stability and avoiding a credit crunch: Comparing different bad bank schemes," DICE Discussion Papers 31, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  31. Torben Stühmeier, 2013. "Access regulation with asymmetric termination costs," Journal of Regulatory Economics, Springer, vol. 43(1), pages 60-89, January.
  32. Wenzel, Tobias, 2010. "Deregulation of shopping hours: The impact on independent retailers and chain stores," DICE Discussion Papers 03, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  33. Hauck, Achim & Neyer, Ulrike, 2010. "The euro area interbank market and the liquidity management of the eurosystem in the financial crisis," DICE Discussion Papers 09, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  34. Ziggy MacDonald & Michael A. Shields, 2004. "Does problem drinking affect employment? Evidence from England," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 139-155.
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  36. Haucap, Justus & Schwalbe, Ulrich, 2011. "Economic principles of state aid control," DICE Discussion Papers 17, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  37. Balsmeier, Benjamin & Buchwald, Achim & Peters, Heiko, 2011. "Outside board memberships of CEOs: Expertise or entrenchment?," DICE Discussion Papers 26, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
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