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American Economic Journal: Applied Economics: Vol. 4 No. 1 (January 2012)
AEJ: Applied Volume. 4, Issue 1 |
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AEJ: Applied Forthcoming Articles
Sorting in Experiments with Application to Social Preferences
Article Citation
Lazear, Edward P.,
Ulrike Malmendier, and
Roberto A. Weber. 2012. "Sorting in Experiments with Application to Social Preferences."
American Economic Journal: Applied Economics,
4(1): 136-63.
DOI: 10.1257/app.4.1.136
DOI: 10.1257/app.4.1.136
Abstract
Individuals sort into and out of economic environments based on their preferences and in response to relative prices. We demonstrate the importance of such sorting for the measurement of social preferences, using two laboratory experiments. First, allowing subjects to avoid environments in which sharing is possible significantly reduces sharing. This reveals the existence of a type of individual who shares reluctantly, preferring to avoid the opportunity to share. Second, after subsidizing the sharing environment, the aggregate amount shared increases, but less is shared, on average, by those who enter. Thus, subsidies intended to induce more sharing have weak effects since they attract those who share the least. (JEL C91, D12, D64)
Article Full-Text Access
Full-text Article
Additional Materials
Download Data Set (16.11 KB) | Online Appendix (873.36 KB)
Authors
Lazear, Edward P. (Stanford U)
Malmendier, Ulrike (U CA, Berkeley)
Weber, Roberto A. (U Zurich)
Malmendier, Ulrike (U CA, Berkeley)
Weber, Roberto A. (U Zurich)
JEL Classifications
C91: Design of Experiments: Laboratory, Individual
D12: Consumer Economics: Empirical Analysis
D64: Altruism
D12: Consumer Economics: Empirical Analysis
D64: Altruism
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