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on Evolutionary Economics |
| By: | Stark, Oded; Behrens, Doris A.; Wang, Yong |
| Abstract: | Replaced with revised version of paper 02/27/08. |
| Keywords: | Institutional and Behavioral Economics, Labor and Human Capital, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:6316&r=evo |
| By: | Francesco Guala; Luigi Mittone |
| Abstract: | Although it is now recognized that norms play an important role in many economic decisions, compliance with conventions is generally considered to be driven by rational self-interest only. We report instead experimental data showing that (1) ‘external’ norms of fairness sustain social conventions that have emerged from repeated play of simple coordination games; and (2) with repetition such conventions acquire an ‘intrinsic’ normative power of their own. This creates pressure towards conformity, and patterns of regular behaviour that are far stronger and more stable than those that would be generated by mere self-interest and rationality. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpce:0810&r=evo |
| By: | Dohmen Thomas; Falk Armin; Huffman David; Sunde Uwe (ROA rm) |
| Abstract: | This paper complements the experimental literature that has shown theimportance of reciprocity for behaviour in stylized labour markets or otherdecision settings. We use individual measures of reciprocal inclinations in alarge, representative survey, and relate reciprocity to real world labour marketbehaviour and life outcomes. We find that reciprocity matters, and we find thatthe way in which it matters is very much in line with the experimental evidence.In particular, positive reciprocity is associated with receiving higher wages andworking harder. Negatively reciprocal inclinations tend to reduce effort. Firmsdo not pay lower wages to individuals with strong negatively reciprocalinclinations. Instead, negative reciprocity increases the likelihood of beingunemployed. Looking at broader measures of success, in terms of number ofclose friends, and subjective well-being, we find that positively reciprocalinclination are associated with greater happiness and ability to sustain friendshiprelations, with the opposite being true for negative reciprocity. |
| Keywords: | education, training and the labour market; |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umaror:2008007&r=evo |