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Social Learning with Intrinsic Preferences

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  • Fabian Dvorak
  • Urs Fischbacher

Abstract

Despite strong evidence for peer effects, little is known about how individuals balance intrinsic preferences and social learning in different choice environments. Using a combination of experiments and discrete choice modeling, we show that intrinsic preferences and social learning jointly influence participants' decisions, but their relative importance varies across choice tasks and environments. Intrinsic preferences guide participants' decisions in a subjective choice task, while social learning determines participants' decisions in a task with an objectively correct solution. A choice environment in which people expect to be rewarded for their choices reinforces the influence of intrinsic preferences, whereas an environment in which people expect to be punished for their choices reinforces conformist social learning. We use simulations to discuss the implications of these findings for the polarization of behavior.

Suggested Citation

  • Fabian Dvorak & Urs Fischbacher, 2024. "Social Learning with Intrinsic Preferences," Papers 2402.18452, arXiv.org.
    • Handle: RePEc:arx:papers:2402.18452
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