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Measuring Socially Appropriate Social Preferences

Author

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  • Carpenter, Jeffrey P.

    (Middlebury College)

  • Robbett, Andrea

    (Middlebury College)

Abstract

We extend the literature structurally estimating social preferences by accounting for the desire to adhere to social norms. Our representative agent is strongly motivated by norms and failing to account for this causes us to overestimate how much agents care about helping those who are worse off. We endogenously identify latent preference types that replicate previous estimates; however, accounting for the normative appropriateness of decisions reveals different motives. Rather than being mostly altruistic, participants are better described as strong altruists or norm followers. Our results (which are robust to moral wiggle room) thus recast prior findings in a new light.

Suggested Citation

  • Carpenter, Jeffrey P. & Robbett, Andrea, 2022. "Measuring Socially Appropriate Social Preferences," IZA Discussion Papers 15590, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp15590
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Niklas M. Witzig, 2024. "Cognitive Noise and Altruistic Preferences," Working Papers 2415, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    2. Niklas M. Witzig, 2024. "Cognitive Noise and Altruistic Preferences," Papers 2410.07647, arXiv.org.

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    More about this item

    Keywords

    experiment; social norms; social preferences; altruism; moral wiggle room; structural estimation; finite mixture models;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D30 - Microeconomics - - Distribution - - - General
    • C49 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Other

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