Social reference points and real-effort provision

Arbeitspapier

We report a laboratory experiment testing whether social reference points impact effort provision. Subjects are randomly assigned the role of worker or peer and the worker observes the peer's earnings before participating in a real-effort task. Between treatments, we exogenously manipulate peer earnings. We find that the workers recall the earnings of their peer and are less satisfied with their own earnings when their peer earns more. Despite this, we do not observe a treatment effect in effort choices. Thus, although our subjects appear to care about income differentials, this does not translate to a change in behavior in our incentivized environment. We relate our results to recent studies of inequality and effort provision.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CeDEx Discussion Paper Series ; No. 2023-03

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Microeconomic Behavior: Underlying Principles ; Personal Income, Wealth, and Their Distributions ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Wage Level and Structure; Wage Differentials
• Thema: social comparisons ; reference-dependent preferences ; real-effortprovision ; inequity aversion ; relative income concerns

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Maus, Patrick ; Montero, María ; Sefton, Martin
• Ereignis: Veröffentlichung
• (wer): The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
• (wo): Nottingham
• (wann): 2023

Weitere Informationen

• Handle: http://hdl.handle.net/10419/284278
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ