My Peers are Watching me - Audience and Peer Effects in a Pay-What-You-Want Context

Elisa Hofmann (), Michael E. Fiagbenu, Asri Özgümüs, Amir M. Tahamtan and Tobias Regner
Additional contact information
Elisa Hofmann: Friedrich Schiller University Jena
Michael E. Fiagbenu: Friedrich Schiller University Jena
Asri Özgümüs: Georg-August University Göttingen
Amir M. Tahamtan: Sharif University of Technology, Teheran

No 2018-019, Jena Economics Research Papers from Friedrich-Schiller-University Jena

Abstract: We experimentally investigate two relevant drivers of payments in voluntary settings: the ef- fects of audience and peers. Our 2×2 between-subjects design varies the interpersonal closeness of buyers (Strangers vs. Peers) and the observability of their payments to other buyers (Anonymous vs. Public). This allows us to enrich the research on both drivers and identify whether payment observability (audience effect), the presence of known others (peer effect), or the combination of both affects voluntary payments. Payments are, on average, higher if they are made public and if buyers feel close to each other. While the effect of audience and peers on payments is additive in total, we do not find an interaction effect, if payments are observed by peers.

Keywords: social preferences; experiments; social image concerns; Pay-What-You-Want; interpersonal closeness (search for similar items in EconPapers)
JEL-codes: C91 D03 L11 (search for similar items in EconPapers)
Date: 2018-12-21
New Economics Papers: this item is included in nep-cbe, nep-cul, nep-exp, nep-pay, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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