Grodner, Andrew; Kniesner, Thomas J.; Bishop, John A. - Institute for the Study of Labor (IZA) - 2011
dramatically when there are social interactions present. Spillover effects increase labor supply and conformity effects make labor … supply perfectly inelastic at a reference group average. The demand for a good may also be influenced by either a spillover … effect or a conformity effect. Positive spillover increases the demand for the good with interactions, and a conformity …