Norm compliance in the presence of peers

Economics

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Authors: Simon Gaechter, Leonie Gerhards, Daniele Nosenzo

Abstract: Several studies have shown that behaviour and outcomes in dictator game experiments are very sensitive to minimal variations in the choice environment. Such contextual effects have been explained using a norm-compliance framework, whereby individuals have a preference to conform to what is collectively perceived as "socially appropriate" behaviour. Within this framework, variations in the decision context may affect what is perceived as appropriate or inappropriate behaviour, and thus influence the choices of norm-compliant individuals. 
In this paper we extend the study of norm compliance in dictator games to a setting where individuals receive information about the behaviour of peers who face a similar decision situation as themselves. We find that norm-compliance has limited explanatory power in the presence of peers.