Lecture 10: Self-Interest and Social Preferences

Question 1

are we really motivated by self-interest alone

Answer 1

no

Question 2

Adam Smith (self-interest -> cooperation)

Answer 2

benevolence of the butcher…

Question 3

self-interest clear in bargaining situations

Answer 3

• if people were only driven by self-interest, the responder should accept the offer regardless of the amount
• in reality the proposer proposes close to 40% and responders reject low offers

Question 4

why do people give ~40% in the ultimatum game

Answer 4

• fairness
• fear of rejection

Question 5

self-interest in the dictator game

Answer 5

• if behavior in ultimatum game is only due to fear of rejection, in dictator game, people should take all the money to themselves
• results on average show dictators give ~30% (driven by fairness)

Question 6

information asymmetry

Answer 6

when one party has more information than the other party
- can lead to moral hazard

Question 7

moral hazard

Answer 7

when one party tries to exploit an information advantage in a dishonest or undesirable way

Question 8

strategic social behavior

Answer 8

• in dictator game, where recipients have no power, offers were similar in symmetric and asymmetric information condition
• in ultimatum game, where recipients have (some) power, offers were lower when information was asymmetric

Question 9

fairness and fear of rejection

Answer 9

a little bit of both
- people care about being fair, to some extent (in the dictator game), but will exploit information asymmetry (in the ultimatum game)

Question 10

contrasting findings

Answer 10

• ‘self-interested behavior is alive and well, even in ultimatum games’
• ‘non-selfish behavior is very much alive, and in good shape too’

Question 11

how power shapes social preferences

Answer 11

• allocators lower their offers to recipients when the power difference shifts in favor of the allocator
• change in framing of situation: when the opponent is without power, feelings of social responsibility are evoked

Question 12

social preferences and emotions

Answer 12

guilt: i have done something bad (to another person)
- make up for the wrongdoing (already in the direction of cooperative mindset)

shame: i am a bad person
- felling worthless, inferior, strong focus on the self, withdraw

Question 13

individual differences in self-interest

Answer 13

• social value orientation (SVO)
• economists and econ students

Question 14

social value orientation (SVO)

Answer 14

weights people assign to their own and other’s outcomes in interdependent situations
- altruists
- cooperators
- individualists
- competitors

Question 15

altruists

Answer 15

maximize others’ gain, regardless of self outcomes

Question 16

cooperators

Answer 16

maximize joint gain and equality

Question 17

individualists

Answer 17

maximize self gain, regardless of others’ outcomes

Question 18

competitors

Answer 18

maximize self, relative to others’ gain

Question 19

prosocials

Answer 19

have on average more older siblings and more secure attachment in romantic relations

Question 20

economists and econ students

Answer 20

more in line with the self-interest model
- accept lower offers as a responder and keep more to themselves as the proposer

Question 21

selfishness as a psychological construct

Answer 21

selfishness is perceived in ourselves and others when we detect a situation-specific desire to benefit the self that disregards others’ desires and prevailing social expectations for the situation

Question 22

delineating selfishness

Answer 22

can promote coherence in interdisciplinary research and provide insights for interventions to prevent or remediate the negative effects of selfishness

Question 23

psychological egoism

Answer 23

the theory that all human actions, including seemingly selfless acts, are ultimately motivated by self-interest

Question 24

4 components of psychological selfishness

Answer 24

together form the preconditions for the detection of selfishness in human life
- situations, desires, minds, and expectations

Question 25

detecting selfishness in others has 3 crucial benefits

Answer 25

promotes self-protection
- can help us detect and prevent potential exploitation and unfair treatment

promotes group coordination
- can bolster coordination and cooperation among groups by informing groups about which members pose a threat to group goals

enables moral signaling
- pointing out selfishness in others can allow us to signal our own moral status by censuring or punishing selfish actors

Question 26

communal relationships

Answer 26

those in which benefits are given non-contingenly in response to partners’ welfare
- strength varies depending on how responsible one feels for the others’ welfare

Question 27

exchange relationships

Answer 27

operate under the assumption that benefits will be given and repaid with tit-for-tat rules in mind

Question 28

example of perception of selfishness in exchange vs communal relationships

Answer 28

• not bringing a coffee to your coworker in the morning would not be seen as selfish, even if they desired a coffee and you knew they wanted one (exchange)
• not bringing a coffee to your romantic partner in the morning when they desired one and you knew they they did would be seen as selfish (communal)

Question 29

emotions related to detecting selfishness in ourselves

Answer 29

embarrassment and guilt

Question 30

emotions related to detecting selfishness in others

Answer 30

anger and hurt