Breaking the norm: An empirical investigation into the unraveling of good behavior

We present results from an artefactual field experiment conducted in rural Peru that considers whether observing non-reciprocal behavior influences an individual's decision to reciprocate. Specifically, we consider the behavior of second movers in a trust game, assessing whether their decision to re...

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Main Authors: Hill, Ruth Vargas, Maruyama, Eduardo, Viceisza, Angelino
Format: Journal Article
Language:Inglés
Published: Elsevier 2012
Subjects:
Online Access:https://hdl.handle.net/10568/153050
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author Hill, Ruth Vargas
Maruyama, Eduardo
Viceisza, Angelino
author_browse Hill, Ruth Vargas
Maruyama, Eduardo
Viceisza, Angelino
author_facet Hill, Ruth Vargas
Maruyama, Eduardo
Viceisza, Angelino
author_sort Hill, Ruth Vargas
collection Repository of Agricultural Research Outputs (CGSpace)
description We present results from an artefactual field experiment conducted in rural Peru that considers whether observing non-reciprocal behavior influences an individual's decision to reciprocate. Specifically, we consider the behavior of second movers in a trust game, assessing whether their decision to reciprocate is influenced by the observed reciprocity of others. In documenting the impact of an external shock to observed reciprocity, this paper shows that small increases in non-reciprocal behavior result in an unraveling of the norm of reciprocity. Survey data is used to explore mechanisms by which this occurred. Results are not consistent with learning effects, suggesting that preferences may be changed by observing others deviating from a norm of reciprocity. These results suggest that investing in encouraging trustworthy behavior can have large benefits in situations where individuals are observing each other's behavior, such as may be the case in a new market institution.
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spelling CGSpace1530502025-09-25T13:01:42Z Breaking the norm: An empirical investigation into the unraveling of good behavior Hill, Ruth Vargas Maruyama, Eduardo Viceisza, Angelino field experimentation norms social capital markets institutions We present results from an artefactual field experiment conducted in rural Peru that considers whether observing non-reciprocal behavior influences an individual's decision to reciprocate. Specifically, we consider the behavior of second movers in a trust game, assessing whether their decision to reciprocate is influenced by the observed reciprocity of others. In documenting the impact of an external shock to observed reciprocity, this paper shows that small increases in non-reciprocal behavior result in an unraveling of the norm of reciprocity. Survey data is used to explore mechanisms by which this occurred. Results are not consistent with learning effects, suggesting that preferences may be changed by observing others deviating from a norm of reciprocity. These results suggest that investing in encouraging trustworthy behavior can have large benefits in situations where individuals are observing each other's behavior, such as may be the case in a new market institution. 2012-09 2024-10-01T13:55:32Z 2024-10-01T13:55:32Z Journal Article https://hdl.handle.net/10568/153050 en Open Access Elsevier Hill, Ruth Vargas; Maruyama, Eduardo; Viceisza, Angelino 2012. Breaking the norm: An empirical investigation into the unraveling of good behavior. Journal of Development Economics 99(1): 150-162
spellingShingle field experimentation
norms
social capital
markets
institutions
Hill, Ruth Vargas
Maruyama, Eduardo
Viceisza, Angelino
Breaking the norm: An empirical investigation into the unraveling of good behavior
title Breaking the norm: An empirical investigation into the unraveling of good behavior
title_full Breaking the norm: An empirical investigation into the unraveling of good behavior
title_fullStr Breaking the norm: An empirical investigation into the unraveling of good behavior
title_full_unstemmed Breaking the norm: An empirical investigation into the unraveling of good behavior
title_short Breaking the norm: An empirical investigation into the unraveling of good behavior
title_sort breaking the norm an empirical investigation into the unraveling of good behavior
topic field experimentation
norms
social capital
markets
institutions
url https://hdl.handle.net/10568/153050
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