Markets and socially responsible behavior: do punishment and religion matter?

Halefom Yigzaw Nigus, Eleonora Nillesen, Pierre Mohnen and Salvatore Di Falco

Journal of Economic Behavior & Organization, 2023, vol. 209, issue C, 572-593

Abstract: We use a set of lab-in-the-field experiments to study whether markets erode socially responsible behavior in a typical Sub-Saharan African country. In the first experiment, we randomly assign participants to a version of a game framed as a “market” context or as a “neutral” (non-market) context. Contrary to the prediction of pure self-interest theory, market participants exhibit considerable levels of socially responsible behavior. However, participants in the market context reveal a lower level of socially responsible behavior compared to the participants in the non-market contexts. We also report that punishment and religion play a significant role in promoting socially responsible behavior in markets. In a second experiment, we test whether the erosion of socially responsible behavior leads to anti-social behavior using the joy-of-destruction game. The results show that the erosion of socially responsible behavior triggers anti-social behavior. Finally, we look at welfare effects and find that our market baseline yields lower welfare compared to markets regulated by punishment mechanisms.

Keywords: Markets; Punishment; Religious priming; Socially responsible behavior (search for similar items in EconPapers)
JEL-codes: C93 D03 D62 D63 K42 L51 M14 Z12 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:209:y:2023:i:c:p:572-593

DOI: 10.1016/j.jebo.2023.03.023

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