CeDEx workshop - Erin Krupka (University of Michigan)

Social norms and identity dependent preferences

Abstract: The introduction of identity into an economic framework provides a new way that preferences can be affected by norms. We present experimental results that test the impact of norms on social identity driven choice. We use a 2 (identity prime) x 2 (frame) x 2 (choice or norms) experimental design to separately and directly elicit empirical measures of identity dependent norms for eleven different re-distribution situations. We show that norms differ across situations and that identity-consistent norms predict behavior better than identity-inconsistent norms. Our findings provide direct evidence of the norms mechanism in social identity driven choice.