We explore the mechanics of empathy. In a controlled immersive virtual reality experiment, we show that neutral information on unauthorized immigration magnifies the empathetic response of subjects when they witness the struggles of unauthorized migrants. We conjecture that perceiving others as...

Individuals might experience negative utility from not consuming a popular product. For example, being inactive on social media can lead to social exclusion or not owning luxury brands can be associated with having a low social status. We show that, in the presence of such spillovers to...