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Economic behavior often takes place in groups of small numbers of peopleinteracting with each other (like work teams, neighborhoods, socialnetworks, etc.). Characteristic of such interaction is the development of(affective) interpersonal relationships, or social ties. According tosociologists,...
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' purchase decisions (whether to buy, and if so how much to pay) in a natural experiment at an online music store with PWYW …%. The experiment suggests that even low levels of social pressure without face to face interaction on customers leads to a …
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In a range of settings, private firms manage peer effects by sorting agents into different groups, be they schools, communities, or product categories. This paper considers such a firm, which controls group entry by setting a series of anonymous prices. We show that private provision...
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; Entitlements ; Fairness Bias ; Risk ; Framed Tax Experiment … in bilateral settings (e.g., dictator game and ultimatum game). We use a framed experiment on taxes to study preferences … below or above average, which is in line with a fairness bias. Finally, subjects not knowing whether their pre-tax income is …
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