This paper studies the way supplier firms’ corporate social responsibility (CSR) affects their likelihood of being selected as new suppliers. Using a large sample of US public firms with detailed supply chain and CSR data, we provide empirical evidence that corporate customers prefer socially responsible suppliers, and that the effect is more prominent when the supplier industry is more competitive, the customer’s own CSR performance is better, or the supplier and the customer have more similar CSR focuses. Our paper contributes (...) to the literature of instrumental stakeholder theory (IST) by confirming corporate customer attraction as a desirable outcome of supplier CSR engagement. It complements the existing IST studies on customer responses by showing that CSR attracts not only final customers but also corporate customers. Moreover, by focusing on corporate customers’ revealed preferences for socially responsible suppliers, our paper also complements the stated-preference-based evidence in the literature of sustainable supply chain management. Our paper’s findings encourage supplier firm managers to invest in CSR to gain competitive advantages in the form of a higher likelihood of selection while simultaneously making positive contributions to society. (shrink)

We investigate the conflict between the ex ante and ex post criteria of social welfare in a new framework of individual and social decisions, which distinguishes between two sources of uncertainty, here interpreted as an objective and a subjective source respectively. This framework makes it possible to endow the individuals and society not only with ex ante and ex post preferences, as is usually done, but also with interim preferences of two kinds, and correspondingly, to introduce interim forms of the (...) Pareto principle. After characterizing the ex ante and ex post criteria, we present a first solution to their conflict that extends the former as much possible in the direction of the latter. Then, we present a second solution, which goes in the opposite direction, and is also maximally assertive. Both solutions translate the assumed Pareto conditions into weighted additive utility representations, and both attribute to the individuals common probability values on the objective source of uncertainty, and different probability values on the subjective source. We discuss these solutions in terms of two conceptual arguments, i.e., the by now classic spurious unanimity argument and a novel informational argument labelled complementary ignorance. The paper complies with the standard economic methodology of basing probability and utility representations on preference axioms, but for the sake of completeness, also considers a construal of objective uncertainty based on the assumption of an exogeneously given probability measure. JEL classification: D70; D81. (shrink)

This paper is a partial review of the literature on ‘social preferences'. There are empirical findings that convincingly demonstrate the existence of social preferences, but there are also studies that indicate their fragility. So how robust are social preferences, and how exactly are they context dependent? One of the most promising insights from the literature, in my view, is an equilibrium explanation of mutually referring conditional social preferences and expectations. I use this concept of equilibrium, summarized by means of a (...) figure, to discuss a range of empirical studies. Where appropriate, I also briefly discuss a couple of insights from the (mostly parallel) evolutionary literature about cooperation. A concrete case of the Orma in Kenya will be used as a motivating example in the beginning. (shrink)

Some behavioral economists argue that the honoring of social norms can be adequately modeled as the optimization of social utility functions in which the welfare of others appears as an explicit argument. This paper suggests that the large experimental claims made for social utility functions are premature at best, and that social norms are better studied as equilibrium selection devices that evolved for use in games that are seldom studied in economics laboratories.

Macroeconomic events often require individuals and policy-makers to make decisions that they are not accustomed to making. For example, a sovereign debt crisis makes it necessary to either default on government debt, increase taxes, cut public spending or to impose a mixture of these measures. I argue that decisions on such matters are not derived from deep preferences; they require reflections and judgement under uncertainty. Past experiences and the interaction with other individuals are likely to influence the salience of preferences (...) in the situations of decision making. Using a simple model, I illustrate how the salience of preferences changes with different degrees of individuality and conformity. Individuality is associated with the importance of private habits, while conformity is related to the perceived dissonance between initial intuitions and social opinions. The results obtained from simple simulation exercises stress that a high degree of conformity or a low degree of individuality may lead to overreactions when social opinion makers err for a short period of time. At the same time, a low degree of conformity or a high degree of individuality or leads to delayed adjustments to new circumstances. (shrink)

The aim of this study is to analyze investor behavior towards socially responsible mutual funds. The analysis is based on an experimental study where a sample of individuals takes investment decisions under different parameters of information about the investment alternatives and expected returns. In the experiment, each participant decides how to distribute an investment budget between two funds, returns on which are uncertain and change over time. Two treatments are conducted, each providing a different degree of information on the socially (...) responsible (SR) character of one of the two investment alternatives. The results obtained suggest that although individuals’ criteria for investment are essentially guided by returns and diversification, participants invest significantly more in a fund when they are explicitly informed about its SR nature. In particular, participants who declare being concerned about SR actually invest significantly more in the SR alternative. Furthermore, the level of SR faithfulness among a small group of investors is such that they invest the main share of their budget in the SR fund, even when the return differential is highly unfavorable. Providing clear information about the SR characteristics of an investment is crucial to help investors express their preferences. (shrink)

Should social preferences conform to the principles of rationality we normally expect of individuals? Should they, for instance, conform to the consistency axioms of expected utility theory? This article considers one fragment of this question.

Social identity is embedded in social structures, generated by various social processes, and has multiple dimensions. We report findings from a laboratory experiment eliciting two-dimensional social identities: a horizontal identity determined either randomly or by preferences and a vertical identity defined by income status and determined either by luck or performance. We also vary income gaps between vertical identity groups. Participants make redistributive allocation decisions between two beneficiaries differing in identity attributes. We find robust evidence of in-group favoritism and that (...) both the identity distance between the allocator and the in-group recipient and income gaps influence the degree of in-group favoritism. (shrink)

Social exclusion can cause negative changes on human beings both in the physiological and psychological aspects. Although considerable efforts have been devoted to study its effects on consumption behavior, little attention has been paid to the consequence that social exclusion might have on consumer’s color preference and the underlying mechanisms. Such social events can change individual’s behavior. This work examines the influence of social exclusion on consumers’ color preference as well as the moderation and mediation effects via three experiments: Experiment (...) 1 studies the impacts of social exclusion on consumer color choice. To further validate the robustness of the results, experiment 2 is designed by replicating the findings of experiment 1 in another product category and instructed the participants to choose products with different colors. Meanwhile, the mediation effect of self-threat is examined. In Experiment 3, the moderation effect of self-construal is investigated via a 2 × 2 × between-subjects design. Our results indicate that social exclusion makes people prefer warm colors rather than cold colors. However, these effects would be mediated by self-threat, which could be further moderated by self-construal. The present study establishes the relationship between social exclusion and consumers’ color preference, which is expected to provide guidance for companies to improve product design and promotion strategies to adapt to various contexts. (shrink)

This article explores some issues having to do with the use of experimental results from one‐shot games to reach conclusions about the existence of social preferences that are taken to figure in the explanation of cooperation in repeated interactions in real life. †To contact the author, please write to: Division of Humanities and Social Sciences, California Institute of Technology, Pasadena, CA 91125; e‐mail: [email protected].

This is the first book to examine behavioral theories on social preference from institutional and philosophical perspectives using economic experiments. The experimental method in economics has challenged central behavioral assumptions based on rationality and selfishness, proposing empirical evidence that not only profit seeking but also social preferences matter in individuals' decision making. By performing distribution experiments in institutional contexts, the author extends assumptions about human behavior to understand actual social economy. The book also aims to enrich behavioral theories of economics (...) directed toward institutional evolution. The author scrutinizes how specific institutional conditions enhance or mute individuals' selfish incentives or their fairness ideals such as egalitarian, performance-based, labor-value radicalism or libertarianism. From experimental results and their analysis, implications for actual problems in social economy and institutional change are derived: why performance-based pay often fails to promote workers' productivity; why labor wages decline whereas shareholder's values increase after financialization; and whether socially responsible investment can be a social institution for corporate governance. The book is also addressed to philosophers of social sciences interested in how experimental methods can contribute to developing cognition of human behaviors and be extended to social theories. Referring to behavioral theorists in the history of economic thought, the author discusses the meanings of experiments in the methodology of social sciences. She also proposes new ways of interpreting experimental results by reviving historic social theories and applying them to actual social problems. (shrink)

Building upon Gasiorowska and Zaleskiewicz's (2021, 2023), we explored how a control threat and attachment style influence social relationship preferences. This experiment aimed to investigate how experiencing a control threat affects individuals with secure, anxious, and avoidant attachment patterns when they can choose between seeking assistance from the market, asking a close person for help, or coping with the situation alone. Participants with different attachment styles were randomly assigned to either the lack of control condition ( n = 290) or (...) the having control condition ( n = 277). Individuals with an anxious attachment were more inclined to choose the market-exchange option and less likely to select the agentic and communal options when faced with a control threat. Meanwhile, those with an avoidant attachment exhibited a higher tendency to choose the agentic option, while their preference for noncontingent help decreased after exposure to the control threat. Surprisingly, secure attachment individuals showed an increased preference for noncontingent help and decreased preferences for market exchange and self-reliance when exposed to the control threat compared to when they had control. These findings suggest that participation in market relationships may meet vital psychological needs and serve as a safeguard against attachment insecurities. (shrink)

Socially oriented preferences in decision making and their relation with work and home environment The aim of this paper was to create a psychometric instrument for the measurement of socially oriented preferences in economic decisions made in professional and private life as well as at scrutinizing the effects of various environmental variables on these preferences. For this purpose, two surveys were carried out on a group of adult working Poles. The idea of the new questionnaire and the results of factor (...) analysis are described herein, along with the other examinations confirming the accuracy of the new instrument. A significant correspondence between eight situational factors: five in professional life and three in private life, and the intensity of socially oriented preferences in economic decisions was confirmed. Both surveys showed that these preferences undergo significant alterations along with each slightest change in situational factors, even ones not directly connected with the decision at hand. Moreover, the studies indicate that the intensity of socially oriented preferences vary with respect to gender and age. Practitioner Points: Team goal setting strategy, work style, responsibility and non-financial rewards intense socially oriented preferences. Financial rewards are irrelevant for socially oriented preferences. (shrink)

Guala appears to take social preferences for granted in his discussion of reciprocity experiments. While he does not overtly claim that social preferences are only by-products that arise in testing environments, he does assert that whatever they are they have little value in the real world. Experiments on animals suggest that social preferences may be unique to humans, supporting the idea that they might play a prominent role in our world.

Satisficing is a central concept in both individual and social multiagent decision making. In this paper we first extend the notion of satisficing by formally modeling the tradeoff between costs and decision failure. Second, we extend this notion of “neo”-satisficing into the context of social or multiagent decision making and interaction, and model the social conditioning of preferences in a satisficing framework.

Feminists have long been aware of the pathology and the dangers of what are now termed “adaptive preferences.” Adaptive preferences are preferences formed in unconscious response to oppression. Thinkers from each wave of feminism continue to confront the problem of women's internalization of their own oppression, that is, the problem of women forming their preferences within the confining and deforming space that patriarchy provides. All preferences are, in fact, formed in response to a limited set of options, but not all (...) preferences are unconscious, pathological responses to oppression. Feminist theory therefore requires a method for distinguishing all preferences from adaptive or deformed preferences. Social contract theory provides such a tool. Social contract theory models autonomous preference-acquisition and retention at both the external level of causation and the internal level of justification. In doing so, social contract theory exposes preferences that do not meet those standards, acting as both a conceptual test that identifies adaptive preferences and as a practical tool for personal and social clarification. A social contract approach helps persons and societies to identify and to confront preferences rooted in unconscious response to oppression. (shrink)

Claims regarding negative strong reciprocity do indeed rest on experiments lacking established external validity, often without even a small Guala's review should prompt strong reciprocity proponents to extend the real-world validity of their work, exploring the preferences participants bring to experiments. That said, Guala's approach fails to differentiate among group selection approaches and glosses over cross-cultural variability.

This paper wishes to problematize the foundations of production governance and offer an analytical perspective on the interrelation between agents’ preferences, strategic choice, and the public sphere . The value is in the idea of preferences being social in nature and in the application both to the internal stakeholders of the organisation and its impacts on people outside. Using the concept of ‘strategic failure’ we suggest that social preferences reflected in deliberative social praxis can reduce false beliefs and increase individual (...) wellbeing. From this approach, the paper offers a taxonomy of production organisations, based on social preferences about two variables: the governance form other strategic decisions that characterize the management of a company at a more operational level, once its fundamental legal form has been chosen. Each dimension is then categorised alongside two basic preferences: towards inclusion or exclusion of ‘publics’ that have no substantial access to decision power about these variables. Our framework explains governance heterogeneity by contrasting exclusive and inclusive social preferences in cooperatives, social enterprises, as well as traditional corporations. A discussion of the evolution of social preferences and organizational forms is addressed through examples and regional experiences. (shrink)

In this paper, we use the risk apportionment technique of Eeckhoudt, Rey and Schlesinger (2007) to study higher order risk preferences for others’ health as well as ex-ante and ex-post inequality preferences for social risky distributions, and their interaction. In an experiment on a sample of university students acting as impartial spectators, we observe risk aversion towards social health losses and a dislike of ex-ante inequality. In addition, evidence for ex-post inequality seeking is much weaker than evidence for ex-ante inequality (...) aversion. Because ex-ante inequality aversion is unrelated to risk aversion, we conclude that simple forms of utilitarianism are not relevant for individual judgment of social risk over health. Last, our investigation of precautionary distribution, which would occur when one particular group in the society suffers from background health risk, shows substantial polarization of preferences. (shrink)

Several hypotheses on the form and function of sex differences in social behaviors were tested. The results suggest that friendship preferences in both sexes can be understood in terms of perceived reciprocity potential—capacity and willingness to engage in a mutually beneficial relationship. Divergent social styles may in turn reflect trade-offs between behaviors selected to maintain large, functional coalitions in men and intimate, secure relationships in women. The findings are interpreted from a broad socio-relational framework of the types of behaviors that (...) facilitate selective advertisement and investment of reciprocity potential across individuals and within groups of men and women. (shrink)

Preferences are the central notion in mainstream economic theory, yet economists say little about what preferences are. This article argues that preferences in mainstream positive economics are comparative evaluations with respect to everything relevant to value or choice, and it argues against three mistaken views of preferences: (1) that they are matters of taste, concerning which rational assessment is inappropriate, (2) that preferences coincide with judgments of expected self-interested benefit, and (3) that preferences can be defined in terms of choices.

Most of the existing literature on social preferences either tests whether certain characteristics of the social context influence individual decisions, or tries to estimate parameters of social preference functions describing such behavior at the level of the entire population. In the present paper, we are concerned with measuring parameters of social preference functions at the individual level. We draw upon concepts developed for eliciting other types of utility functions, in particular the literature on decision making under incomplete information. Our method (...) derives parameters of social preference functions from indifference statements about the distribution of payoffs a group. We apply our method in a controlled social preference experiment to establish the external validity of estimated parameters. Our results show the expected relationships to some external factors and also a strong correspondence between parameter estimates and factors that, according to the subjects’ own descriptions, influenced their behavior. We also find that some concepts discussed in the literature on social preferences, in particular envy toward players receiving a larger payoff, have very diverse and complex effects at the individual level. (shrink)

Since Condorcet discovered the voting paradox in the simple majority rule, many scholars have tried to investigate conditions that yield “social-preference cycles”. The paradox can be extended to two main approaches. On the one hand, Kenneth Arrow developed a general framework of social choice theory; on the other hand, direct generalizations of the paradox were offered. The motivation and surface meaning of the two approaches are different, as are the assumed background conditions. In this paper, we investigate the relationship between (...) the two approaches by taking a close look at two works, Ferejohn and Fishburn and Schwartz. (shrink)

Certain messages, even when not directly payoff relevant, can be a credible form of communication in light of natural social preferences. Social image concerns and other-regarding preferences interact to create incentives to communicate about how one feels about other people. Recognizing the prevalence of the incentive to communicate about one’s social preferences suggests that many social and economic phenomena—from norms of etiquette to cooperation to gift exchange—should be seen, in part, as forms of signaling. These behaviors may be surprisingly robust (...) to material costs, yet sensitive to context. (shrink)

The study examines a model proposing relationships between personal values, positive (i.e., benefits) and negative (i.e., threats) appraisal of immigrants, and social contact. Based on a values-attitudes-behavior paradigm, the study extends previous work on personal values and attitudes to immigrants by examining not only negative but also positive appraisal and their connection with social contact with immigrants. Using a representative sample of 1,600 adults in the majority population in Israel, results showed that higher preference for anxiety-avoidance values (self-enhancement and conservation) (...) was related to higher levels of perceived threat and lower levels of benefit, while higher preference for anxiety-free values (self-transcendence and openness to change) was related to higher levels of perceived benefits and lower levels of threat. Greater opportunities for contact and perceived benefits and lower levels of threats were related to more social contact. The model showed good fit across the total sample, and across four diverse immigrant groups in Israel (diaspora immigrants from the Former Soviet Union, Ethiopia and Western countries, and asylum seekers). In line with a Stereotype Content Model, which suggests that group-specific stereotypes are related to social structural characteristics of the group, associations between variables differed by group. Results strengthen a theoretical conceptualization that posits an indirect relationship between personal value preferences and behavior through group appraisal. They highlight the importance of comprehensive conceptualizations including both positive and negative appraisal of immigrants, which take into account the way different groups may be appraised by the majority population. (shrink)

Background We present and discuss the results of a Norwegian survey of medical doctors' views on potential ethical dilemmas in professional practice. Methods The study was conducted in 2015 as a postal questionnaire to a representative sample of 1612 doctors, among which 1261 responded. We provided a list of 41 potential ethical dilemmas and asked whether each was considered a dilemma, and whether the doctor would perform the task, if in a position to do so. Conceptually, dilemmas arise because of (...) tensions between two or more of four doctor roles: the patient’s advocate, a steward of societal interests, a member of a profession and a private individual. Results 27 of the potential dilemmas were considered dilemmas by at least 50% of the respondents. For more than half of the dilemmas, the anticipated course of action varied substantially within the professional group, with at least 20% choosing a different course than their colleagues, indicating low consensus in the profession. Conclusions Doctors experience a large range of ethical dilemmas, of which many have been given little attention by academic medical ethics. The less-discussed dilemmas are characterised by a low degree of consensus in the profession about how to handle them. There is a need for medical ethicists, medical education, postgraduate courses and clinical ethics support to address common dilemmas in clinical practice. Viewing dilemmas as role conflicts can be a fruitful approach to these discussions. (shrink)

This paper provides a real-world test case for how to approach contemporary preference aggregation procedures. We examine the method of using stated preferences to structure social well-being indices. The method has seen increasing popularity and interest, both in economists’ laboratory research and by governments and international institutions. SP offers a sophisticated aggregation of peoples’ preferences regarding social well-being aspects and, in this way, provides elegant and non-paternalistic techniques for deciding how to weigh and prioritize various potential aspects of social well-being. (...) However, this method also poses difficulties and limitations from broader political and philosophical perspectives. This paper comprehensively charts these difficulties and suggests that SP methods should be complemented with appropriate deliberation procedures. The paper bridges the distinct perspectives of economists and political theorists in order to make SP an attractive instrument in determining policy. (shrink)

Preferences are the central notion in mainstream economic theory, yet economists say little about what preferences are. This article argues that preferences in mainstream positive economics are comparative evaluations with respect to everything relevant to value or choice, and it argues against three mistaken views of preferences: (1) that they are matters of taste, concerning which rational assessment is inappropriate, (2) that preferences coincide with judgments of expected self-interested benefit, and (3) that preferences can be defined in terms of choices.

In recent years, experimental economists have complemented earlier research by psychologists on equity theory, altruism, and related theories, by studying the anonymous allocation of dollar prizes by experimental subjects. This research has helped us understand the nature of attitudes towards fairness, reciprocity, and other "social preferences," and how these attitudes interact with self interest. The author critically reviews some of this evidence and the prevalent interpretations of this evidence to suggest some general lessons and ideas for where further research would (...) be useful. (shrink)

In social networks, individual heterogeneity is widely existed, and an individual often tends to contact more frequently with friends of similar status or opinion. It is worth noting that the contact preference characteristic among heterogeneous individuals will have a significant effect on social contagions. Thus, we propose a social contagion model which takes the heterogeneity of individual influence and contact preference into account, and make a theoretical analysis of the social spreading process by developing an edge-based compartmental theory. We find (...) that the competition between simple contagion and complex contagion leads to the emergence of crossover phase transition phenomena when the influence of ordinary individuals is low: it changes from being hybrid to continuous, then to hybrid, and eventually to continuous phase transition with the increase of the contact probability of homogeneous individuals. However, it changes from being first-order to continuous phase transition when the influence strength of ordinary individuals is relatively high. In addition, there is an optimal value or range of contact probability of homogeneous individuals which maximizes the spreading size, and the optimal value or lower bound of the optimal range decreases with the increase of transmission probability. Our theoretical prediction results are in good agreement with the simulation results. (shrink)

This paper examines a special kind of social preference, namely a preference to do one's part in a mixed-motive setting because the other party expects one to do so. I understand this expectation-based preference as a basic reactive attitude. Given this, and the fact that expectations in these circumstances are likely to be based on other people's preferences, I argue that in cooperation a special kind of equilibrium ensues, which I call a loop, with people's preferences and expectations mutually cross-referring. (...) As with a Lewis-norm, the loop can get started in a variety of ways. It is self-sustaining in the sense that people with social preferences have sufficient reason not to deviate. (shrink)

Several hypotheses on the form and function of sex differences in social behaviors were tested. The results suggest that friendship preferences in both sexes can be understood in terms of perceived reciprocity potential—capacity and willingness to engage in a mutually beneficial relationship. Divergent social styles may in turn reflect trade-offs between behaviors selected to maintain large, functional coalitions in men and intimate, secure relationships in women. The findings are interpreted from a broad socio-relational framework of the types of behaviors that (...) facilitate selective advertisement and investment of reciprocity potential across individuals and within groups of men and women. (shrink)

This article surveys some of the philosophical issues raised by recent experimental work in economics on so-called social preferences. This work raises a number of fascinating methodological and interpretive issues that are of central importance both to economics and to social and political philosophy.

The finding that women are attracted to men older than themselves whereas men are attracted to relatively younger women has been explained by social psychologists in terms of economic exchange rooted in traditional sex-role norms. An alternative evolutionary model suggests that males and females follow different reproductive strategies, and predicts a more complex relationship between gender and age preferences. In particular, males' preferences for relatively younger females should be minimal during early mating years, but should become more pronounced as the (...) male gets older. Young females are expected to prefer somewhat older males during their early years and to change less as they age. We briefly review relevant theory and present results of six studies testing this prediction. Study 1 finds support for this gender-differentiated prediction in age preferences expressed in personal advertisements. Study 2 supports the prediction with marriage statistics from two U.S. cities. Study 3 examines the cross-generational robustness of the phenomenon, and finds the same pattern in marriage statistics from 1923. Study 4 replicates Study 1 using matrimonial advertisements from two European countries, and from India. Study 5 finds a consistent pattern in marriages recorded from 1913 through 1939 on a small island in the Philippines. Study 6 reveals the same pattern in singles advertisements placed by financially successful American women and men. We consider the limitations of previous normative and evolutionary explanations of age preferences and discuss the advantages of expanding previous models to include the life history perspective. (shrink)

Experimental data on social preferences present a number of features that need to be incorporated in econometric modelling. We explore a variety of econometric modelling approaches to the analysis of such data. The approaches under consideration are: the Random Utility approach ; the Random Behavioural approach ; and the Random Preference approach. These approaches are applied in various ways to an experiment on fairness conducted by Cappelen et al. :818–827, 2007). Various models that we estimate succeed in capturing the key (...) features of the dataset. Conclusions concerning fairness-related behaviour depend crucially on the choice of econometric model. (shrink)