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Peer pressure, social spillovers, and reciprocity: an experimental analysis

Published online by Cambridge University Press:  14 March 2025

Luigi Mittone
Affiliation:
CEEL, Department of Economics, University of Trento, Via Inama, 5, 38100 Trento, Italy
Matteo Ploner*
Affiliation:
CEEL, Department of Economics, University of Trento, Via Inama, 5, 38100 Trento, Italy

Abstract

This study examines whether reciprocity is affected by what others know and do. Two types of social effects are investigated within the framework of a modified investment game. On the one hand, we assess the role played by the awareness that own choices are observed by another trustee—i.e., peer pressure. On the other hand, we measure the interaction between trustees’ choices—i.e., social spillovers. We find that peer pressure fosters reciprocity and, to a lesser extent, so do social spillovers.

Type
Research Article
Copyright
Copyright © Economic Science Association 2010

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