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The effect of perceived similarity and social proximity on the formation of prosocial preferences

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  • Schütt, Christoph A.

Abstract

Homophily, the tendency of interacting with similar others, has been found to be an important determinant of the existence and stability of social groups, whereas social relationships within these groups vary in the degree of social proximity. In this paper, I investigate how perceived similarity affects social proximity and care towards a partner and altruistic giving. In a between-subjects design, subjects are matched with either a similar or a dissimilar partner and play a dictator game. Similarity is induced via objective similarities on pre-elicited personality profiles based on Big-Five personality traits. I show that perceiving someone as more similar increases giving in a dictator game. A mediation analysis shows that social proximity and care towards the partner mediate the treatment effect. That is, subjects in the similar treatment feel a higher degree of social proximity to their partner, leading to a higher degree of care towards the latter and therefore, give more in the dictator game.

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  • Schütt, Christoph A., 2023. "The effect of perceived similarity and social proximity on the formation of prosocial preferences," Journal of Economic Psychology, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:joepsy:v:99:y:2023:i:c:s016748702300079x
    DOI: 10.1016/j.joep.2023.102678
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    More about this item

    Keywords

    Social proximity; Care; Dictator game; Other-regarding preferences;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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