“Social Interactions, Local Spillovers and Unemployment

A-Tier
Journal: Journal of the European Economic Association
Year: 2021
Volume: 19
Issue: 4
Pages: 2373-2398

Authors (2)

Lorenz Goette (not in RePEc) Egon Tripodi (Hertie School)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a novel experiment that prevents social learning, thus allowing us to disentangle the underlying mechanisms of social influence. Subjects observe their peer’s incentives, but not their behavior. We find evidence of conformity: When individuals believe that incentives make others contribute more, they also increase their contributions. Conformity is driven by individuals who feel socially close to their peer. However, when incentives are not expected to raise their peer’s contributions, participants reduce their own contributions. Our data are consistent with an erosion of norm adherence when prosocial behavior of the social reference is driven by extrinsic motives, and cannot be explained by incentive inequality or altruistic crowding out. These findings show scope for social influence in settings with limited observability and offer insights into the mediators of conformity.

Technical Details

RePEc Handle
repec:oup:jeurec:v:19:y:2021:i:4:p:2373-2398.
Journal Field
General
Author Count
2
Added to Database
2026-01-29