Image versus Information: Changing Societal Norms and Optimal Privacy

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2020
Volume: 12
Issue: 3
Pages: 116-64

Authors (2)

S. Nageeb Ali (not in RePEc) Roland Bénabou (Princeton University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We analyze the costs and benefits of using social image to foster desirable behaviors. Each agent acts based on his intrinsic motivation, private assessment of the public good, and reputational concern for appearing prosocial. A Principal sets the general degree of privacy, observes the social outcome, and implements a policy: investment, subsidy, law, etc. Individual visibility reduces free riding but makes aggregate behavior ("descriptive norm") less informative about societal preferences ("prescriptive norm"). We derive the level of privacy (and material incentives) that optimally trades off social enforcement and learning, and we characterize its variations with the economy's stochastic and informational structure.

Technical Details

RePEc Handle
repec:aea:aejmic:v:12:y:2020:i:3:p:116-64
Journal Field
General
Author Count
2
Added to Database
2026-01-24