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Negative Economic Shocks and the Compliance to Social Norms

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Listed:
  • Bogliacino, Francesco

    (Universidad Nacional de Colombia)

  • Charris, Rafael Alberto

    (Universidad Nacional de Colombia)

  • Gómez, Camilo Ernesto

    (Centro de Investigaciones para el Desarrollo)

  • Montealegre, Felipe

    (Universidad Nacional de Colombia)

Abstract

We study why suffering a Negative Economic Shock (NES), i.e. a significant loss, may trigger a change in behaviour. We conjecture that people trade off concern for money with a conditional preference to follow social norms and that suffering a shock makes extrinsic motivation more salient, leading to more norm violation. We study this question experimentally: After administering losses on the earnings from a Real Effort Task, we analyze choices in prosocial and antisocial settings. To derive our predictions, we elicit social norms separately from behaviour. We find robust evidence that shock increases deviations from norms.

Suggested Citation

  • Bogliacino, Francesco & Charris, Rafael Alberto & Gómez, Camilo Ernesto & Montealegre, Felipe, 2021. "Negative Economic Shocks and the Compliance to Social Norms," SocArXiv 285tv_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:285tv_v1
    DOI: 10.31219/osf.io/285tv_v1
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