American Economic Journal Applied Economics · 2012 · 376 citations · 60 references
Social SciencesEconomicsExperimental DesignExperimental EconomicsMicroeconomicsHousehold EconomicsMarket ExperimentsSocial ChoiceSocial ExchangeSocial PreferencesWelfare EconomicsDistributional PreferencesEndogenous SortingRelative PricesSocial Preferences In BargainingSorting By Preferences
Individuals sort into and out of economic environments based on their preferences and in response to relative prices. We demonstrate the importance of such sorting for the measurement of social preferences, using two laboratory experiments. Allowing subjects to avoid sharing environments reduces sharing, revealing a type of individual who shares reluctantly and prefers to avoid sharing, while subsidizing sharing increases aggregate sharing but attracts those who share the least, resulting in weak overall effects. JEL codes: C91, D12, D64.
Individuals sort into and out of economic environments based on their preferences and in response to relative prices. We demonstrate the importance of such sorting for the measurement of social preferences, using two laboratory experiments. First, allowing subjects to avoid environments in which sharing is possible significantly reduces sharing. This reveals the existence of a type of individual who shares reluctantly, preferring to avoid the opportunity to share. Second, after subsidizing the sharing environment, the aggregate amount shared increases, but less is shared, on average, by those who enter. Thus, subsidies intended to induce more sharing have weak effects since they attract those who share the least. (JEL C91, D12, D64)
60
Sample Selection Bias as a Specification Error
James J. Heckman · Econometrica · 1979 · 28.9K citations
A Theory of Fairness, Competition, and Cooperation
Ernst Fehr, Klaus M. Schmidt · The Quarterly Journal of Economics · 1999 · 11.1K citations · Full text
ERC: A Theory of Equity, Reciprocity, and Competition
Gary E. Bolton, Axel Ockenfels · American Economic Review · 2000 · 5.5K citations