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Self-serving behavior of the rich causes contagion effects among the poor

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  • Rockenbach, Bettina
  • Tonke, Sebastian
  • Weiss, Arne R.

Abstract

In a lab-in-the-field experiment, we study how the pro-social behavior of inhabitants of an impoverished neighborhood in Namibia is influenced after being informed about the pro-social or egoistic behavior of either a rich or a poor comparison group. We find that the poor behave significantly less prosocial when they learn about the egoistic behavior of the rich. Yet, neither the rich's pro-social behavior nor information on how other poor individuals behaved affects the poor's behavior. This contagion effect is not simply driven by imitating the behavior of the comparison group, or by social identity concerns or peer pressure. Instead, our data suggest that the poor's drop in pro-social behavior is caused by the violation of a social justice norm: The poor expect the rich to be pro-social and they are surprised if they act differently. Learning about the rich's egoism even makes participants’ beliefs about what should be done (injunctive norms) significantly more egoistic. Hence, the self-serving behavior of the rich causes a double damage: Society not only suffers from their low pro-sociality but also from a spread of egoism among other members of society.

Suggested Citation

  • Rockenbach, Bettina & Tonke, Sebastian & Weiss, Arne R., 2021. "Self-serving behavior of the rich causes contagion effects among the poor," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 289-300.
  • Handle: RePEc:eee:jeborg:v:183:y:2021:i:c:p:289-300
    DOI: 10.1016/j.jebo.2020.12.032
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    2. Martinangeli, Andrea & Windsteiger, Lisa, 2022. "Cheating Responses to Tax Evasion," VfS Annual Conference 2022 (Basel): Big Data in Economics 264029, Verein für Socialpolitik / German Economic Association.
    3. Andrea F.M. Martinangeli & Biljana Meiske, 2022. "The influence premium of monetary rank," Working Papers tax-mpg-rps-2022-08, Max Planck Institute for Tax Law and Public Finance.
    4. Andrea F.M. Martinangeli & Lisa Windsteiger, 2022. "The Propagation of Unethical Behaviours: Cheating Responses to Tax Evasion," CESifo Working Paper Series 10144, CESifo.
    5. Nathalie Etchart-vincent & Marisa Ratto & Emmanuelle Taugourdeau, 2024. "Why should I comply with taxes if others don't?: an experimental study testing informational effects," Working Papers hal-04635966, HAL.
    6. Martinangeli, Andrea F.M. & Windsteiger, Lisa, 2024. "Inequality shapes the propagation of unethical behaviours: Cheating responses to tax evasion along the income distribution," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 135-181.

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    More about this item

    Keywords

    Pro-social behavior; Social norm violation; Lab-in-the-field experiment;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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