Lecture 10: Self-Interest and Social Preferences Flashcards
are we really motivated by self-interest alone
no
Adam Smith (self-interest -> cooperation)
benevolence of the butcher…
self-interest clear in bargaining situations
- 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
why do people give ~40% in the ultimatum game
- fairness
- fear of rejection
self-interest in the dictator game
- 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)
information asymmetry
when one party has more information than the other party
- can lead to moral hazard
moral hazard
when one party tries to exploit an information advantage in a dishonest or undesirable way
strategic social behavior
- 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
fairness and fear of rejection
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)
contrasting findings
- ‘self-interested behavior is alive and well, even in ultimatum games’
- ‘non-selfish behavior is very much alive, and in good shape too’
how power shapes social preferences
- 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
social preferences and emotions
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
individual differences in self-interest
- social value orientation (SVO)
- economists and econ students
social value orientation (SVO)
weights people assign to their own and other’s outcomes in interdependent situations
- altruists
- cooperators
- individualists
- competitors
altruists
maximize others’ gain, regardless of self outcomes
cooperators
maximize joint gain and equality
individualists
maximize self gain, regardless of others’ outcomes
competitors
maximize self, relative to others’ gain
prosocials
have on average more older siblings and more secure attachment in romantic relations
economists and econ students
more in line with the self-interest model
- accept lower offers as a responder and keep more to themselves as the proposer
selfishness as a psychological construct
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
delineating selfishness
can promote coherence in interdisciplinary research and provide insights for interventions to prevent or remediate the negative effects of selfishness
psychological egoism
the theory that all human actions, including seemingly selfless acts, are ultimately motivated by self-interest
4 components of psychological selfishness
together form the preconditions for the detection of selfishness in human life
- situations, desires, minds, and expectations
detecting selfishness in others has 3 crucial benefits
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
communal relationships
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
exchange relationships
operate under the assumption that benefits will be given and repaid with tit-for-tat rules in mind
example of perception of selfishness in exchange vs communal relationships
- 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)
emotions related to detecting selfishness in ourselves
embarrassment and guilt
emotions related to detecting selfishness in others
anger and hurt
