Sorting, Prices, and Social Preferences

Edward Lazear, Ulrike Malmendier and Roberto Weber

No 12041, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What impact do social preferences have in market-type settings where individuals can sort in response to relative prices? We show that sorting behavior can distinguish between individuals who like to share and those who share but prefer to avoid the sharing environment altogether. In four laboratory experiments, prices and social preferences interact to determine the composition of sharing environments: Costless sorting reduces the number of sharers, even after inducing positive reciprocity. Subsidized sharing increases entry, but mainly by the least generous sharers. Costly sharing reduces entry, but attracts those who share generously. We discuss implications for real-world giving with sorting.

JEL-codes: B41 C90 D64 (search for similar items in EconPapers)
Date: 2006-02
New Economics Papers: this item is included in nep-evo, nep-exp and nep-soc
Note: LS PE
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Citations: View citations in EconPapers (35)

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