Social preferences on networks

Sarah Rezaei, Stephanie Rosenkranz, Utz Weitzel and Bastian Westbrock

Journal of Public Economics, 2024, vol. 234, issue C

Abstract: Social preferences are a powerful determinant of human behavior. We study their behavioral implications within the context of a network game. A key feature of our game is the existence of multiple equilibria that widely differ in terms of their payoff distributions. Determining which equilibrium is most plausible is thus a key concern. We show that introducing social preferences into the game can resolve the problem of equilibrium multiplicity. However, the selected equilibria do not necessarily yield more efficient or egalitarian payoff distributions. Rather, they just reinforce the inequality that is already inherent in a network structure. We validate these predictions in an experiment and discuss their implications for managerial practice and behavior in larger networks.

Keywords: Social preferences; Network games; Public goods (search for similar items in EconPapers)
JEL-codes: C70 C91 D85 H41 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:234:y:2024:i:c:s0047272724000495

DOI: 10.1016/j.jpubeco.2024.105113

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