nep-evo New Economics Papers
on Evolutionary Economics
Issue of 2017‒11‒19
six papers chosen by
Matthew Baker
City University of New York

  1. Microfoundations, Behaviour, and Evolution: Evidence from Experiments By Bogliacino, Francesco; Codagnone, Cristiano
  2. Where do fairness preferences come from? Norm transmission in a teen friendship network By David Hugh-Jones; Jinnie Ool
  3. Behavioral Biases in Marketing By Guhl, Daniel; Klapper, Daniel; Massner, Katharina; Spann, Martin; Stich, Lucas; Yegoryan, Narine
  4. Immobile Australia: Surnames Show Strong Status Persistence, 1870-2017 By Gregory Clark; Andrew Leigh; Mike Pottenger
  5. Tax morale and the role of social norms and reciprocity: Evidence from a randomized survey experiment By Doerrenberg, Philipp; Peichl, Andreas
  6. Facing Yourself - A Note on Self-image By Armin Falk

  1. By: Bogliacino, Francesco; Codagnone, Cristiano
    Abstract: The article discusses whether and to what extent experiments can contribute to a research paradigm based on the study of human behaviour in complex evolving environments and on the problem of asymmetric adjustment among different components of economic system along certain trajectories, focusing on the possibility that experimental evidence may represent an external consistency check on this type of heterodox modelling. It considers the evidence on rationality of human agents, and the possibility to identify a microfoundation alternative to homo oeconomicus, discussing the evidence on humans as strong reciprocators, as trusting individuals and as embedded in social norms.
    Keywords: Experiments; Causality; Heuristics; Learning; Bounded Rationality; Altruism; Punishment; Trust; Norms
    JEL: C18 C9 D1 D3
    Date: 2017–10
  2. By: David Hugh-Jones (University of East Anglia); Jinnie Ool (University of East Anglia)
    Abstract: People's preferences about the fair distribution of resources vary within and between different populations, and this affects many economic and political outcomes. We argue that a source of these differences is the social transmission of fairness norms from peers during adolescence. We ran an experiment on transmission of fairness norms in a friendship network of 11-15 year olds. Observing others' choices affects young people's fairness norms, as expressed in both their own choices and the attitudes they express. Our results show how young people can adopt redistributive norms via the social influence of their peer group. We also examine how the strength of social influence varies with friendship status and network position.
    Date: 2017–06–02
  3. By: Guhl, Daniel (Humboldt University Berlin); Klapper, Daniel (Humboldt University Berlin); Massner, Katharina (LMU); Spann, Martin (LMU); Stich, Lucas (LMU); Yegoryan, Narine (Humboldt University Berlin)
    Abstract: Psychology and economics (the mixture of which is known as behavioral economics) are two fundamental disciplines underlying marketing. Various marketing studies document the non-rational behavior of consumers, even though behavioral biases might not always be consistently termed or formally described. In this review, we identify empirical research that studies behavioral biases in marketing. We summarize the key findings according to three classes of deviations (i.e., non-standard preferences, non-standard beliefs, and non-standard decision-making) and the marketing mix instruments (i.e., product, price, place, and promotion). We thereby introduce marketing researchers to the theoretical foundation of and terminology used in behavioral economics. For scholars from behavioral economics, we provide ready access to the rich empirical, applied marketing literature. We conclude with important managerial implications resulting from the behavioral biases of consumers, and we present avenues for future research.
    Keywords: marketing; behavioral economics; behavioral biases; review;
    Date: 2017–10–30
  4. By: Gregory Clark; Andrew Leigh; Mike Pottenger
    Abstract: The paper estimates long run social mobility in Australia 1870-2017 tracking the status of rare surnames. The status information includes occupations from electoral rolls, and records of degrees awarded by Melbourne and Sydney universities. Status persistence was strong throughout, with an intergenerational correlation of 0.7-0.8, and no change over time. Notwithstanding egalitarian norms, high immigration and a well-targeted social safety net, Australian long-run social mobility rates are low. Despite evidence on conventional measures that Australia has higher rates of social mobility than the UK or USA, status persistence for surnames is as high as that in England or the USA.
    Keywords: intergenerational mobility, social mobility, inequality
    JEL: J62
    Date: 2017
  5. By: Doerrenberg, Philipp; Peichl, Andreas
    Abstract: We present the first randomized survey experiment in the context of tax compliance to assess the role of social norms and reciprocity for intrinsic tax morale. We find that participants in a reciprocity treatment have significantly higher tax morale than those in a social-norm treatment. This suggests that a potential backfire effect of social norms is outweighed if the consequences of violating the social norm are made salient. We further document the anatomy of intrinsic motivations for tax compliance and present first evidence that previously found gender effects in tax morale are not driven by differences in risk preferences.
    Keywords: Tax compliance,Tax evasion,Intrinsic motivations,Tax morale,Social norms,Reciprocity
    JEL: H20 H32 H50 C93
    Date: 2017
  6. By: Armin Falk
    Abstract: Numerous signaling models in economics assume image concerns. These take two forms, as relating either to social image or self-image. While empirical work has identified the behavioral importance of the former, little is known about the role of self-image concerns. We exogenously vary self-image concerns in manipulating self-directed attention and study the impact on moral behavior. The choice context in the experiment is whether subjects inict a painful electric shock on another subject to receive a monetary payment. Three between-subjects conditions are studied. In the main treatment, subjects see their own face on the decision screen in a real-time video feed. In the two control conditions, subjects see either no video at all or a neutral video. We find that the exogenous increase in self-image concerns significantly reduces the fraction of subjects inflicting pain.
    Keywords: self-image, moral behavior
    JEL: D64 C91
    Date: 2017

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