Living in Two Neighborhoods - Social Interaction Effects in the Laboratory

Falk, Armin; Fischbacher, Urs; Gächter, Simon

Living in Two Neighborhoods - Social Interaction Effects in the Laboratory

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Date

2013

Authors

Falk, Armin

Fischbacher, Urs

Gächter, Simon

Publication type

Journal article

Published in

Economic Inquiry ; 51 (2013), 1. - pp. 563-578. - ISSN 0095-2583. - eISSN 1465-7295

Abstract

Field evidence suggests that people belonging to the same group often behave similarly, that is, behavior exhibits social interaction effects. We conduct a laboratory experiment that avoids the identification problem present in the field and allows us to study the behavioral logic of social interaction effects. Our novel design feature is that each subject is simultaneously a member of two randomly assigned and identical groups where only members (“neighbors”) are different. We study behavior in a coordination game with multiple equilibria and a public goods game, which has only one equilibrium in material payoffs. We speak of social interactions if the same subject at the same time makes group-specific decisions that depend on their respective neighbors’ decisions. We find that a majority of subjects exhibit social interaction effects both when the game has multiple equilibria in material payoffs and when it only has one equilibrium.

Subject (DDC)

330 Economics

Keywords

Experiment,public goods

Cite This

ISO 690

FALK, Armin, Urs FISCHBACHER, Simon GÄCHTER, 2013. Living in Two Neighborhoods - Social Interaction Effects in the Laboratory. In: Economic Inquiry. 51(1), pp. 563-578. ISSN 0095-2583. eISSN 1465-7295. Available under: doi: 10.1111/j.1465-7295.2010.00332.x

BibTex

@article{Falk2013Livin-24744,
  year={2013},
  doi={10.1111/j.1465-7295.2010.00332.x},
  title={Living in Two Neighborhoods - Social Interaction Effects in the Laboratory},
  number={1},
  volume={51},
  issn={0095-2583},
  journal={Economic Inquiry},
  pages={563--578},
  author={Falk, Armin and Fischbacher, Urs and Gächter, Simon}
}

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Bibliography of Konstanz

Yes