Lecture 9: self-interest and beyond Flashcards
self-interest
is one of the assumptions of rational theory
with this comes envy
apparently our happiness is also dependent on social comparison
two types of envy?
- benign envy (benijden)
- Malicious envy (afgunst)
different feelings and therefore generate different behavior
remote association test
18 three word association tests and asked the word that belongs to them
found that people work harder if they feel benign envy than malicious envy.
admiration also did not have this motivating effect.
iphone study
was about deservingness.
- people would pay more for the iphone when beingn envy was induced through telling the participants about how someone else obtained it.
behavioral findings that are in conflicts of self-interest
- motive of self-interest; people are self-interested
- norm of self-interest: people are thought to be self interested
Miller
researched norm of self-interest.
we like to explain behavior in terms of self-interest.
people don’t buy the story that you would do something just for someone else.
55-year old man with playground in front of his house
What is the origin of the norm of self-interest
broken windows theory says that how self-interested people are depends on the rules that apply in that situation.
Keizer, Lindenberg & Steg (2008)
envelope from clean or messy mailbox
- messy envirnoment signals you can violate the norms and people would take the 5 euro’s
Frank, gilovich and Refan
studied the effect of knowing the rational theory on self-interested behavior.
- donated less to charity
- chose defect option more in prisoners dilemma
- were less honest
- but did dependent on the type of professor
ultimatum game
proposer has 100 euro’s to divide and other gets to reject or accept.
expectations for the ultimatum game and reality
rational theory expects 99/1, but people do 50/50, because of fairness and fear of rejection.
similair when stakes were raised and in other countries
Kahneman et al., on the ultimatum game
researched it with variations
- also fair if the offers couldn’t be rejected
- subjects sacrificed money to punish a proposer who behaved unfairly
dictator game
proposer still divides, but there is no rejection or acceptation
the offers are typically lower, but still positive.
George A. Akerlof
won nobel prize for the market of lemons
- information assymetry
- quality uncertainty
- market mechanism
information assymetry
one person knows more than the other.
studied with poker chips
- from this we can conclude self-interested behavior is alive and well