Competition, Cooperation, and Motivated Social Perceptions

Jeanne Hagenbach () and Rachel Kranton ()
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Jeanne Hagenbach: ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique
Rachel Kranton: Duke University [Durham]

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Abstract: Many empirical and experimental studies show that social divisions negatively impact economic outcomes. This experiment reverses the causal arrow and asks if economic settings affect individuals' social perceptions. Subjects receive information about counterparts' preferences and demographics and then work for bonus pay by completing a real-effort task. Subjects who compete for pay against their counterparts report having less in common with their counterparts than subjects in a cooperative setting. This effect emerges despite monetary incentives to report correctly the number of traits in common. The economic setting has little effect on the less precise evaluation of similarity to counterparts.

Date: 2023-07
New Economics Papers: this item is included in nep-exp
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03792554v2
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