Social Dilemmas
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PRESENTATION OUTLINE
SOCIAL DILEMMAS, PUBLIC GOODS, AND SOLUTIONS
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SOCIAL PREFERENCES
PREFERENCES THAT PLACE A VALUE ON HOW YOUR ACTIONS AFFECT OTHER PEOPLE TOO
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PREFERENCES – HOW ARE THEY REVEALED?
- Survey questions
- Statistical studies
- Lab experiments
- Field experiments
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WHAT’S THE PROBLEM?
THE MARKET PRODUCES TOO LITTLE SINCE SOME PEOPLE WON’T PAY FOR THE GOOD THAT LOTS OF PEOPLE WANT
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PUBLIC GOODS
A GOOD FOR WHICH USE BY ONE PERSON DOES NOT REDUCE ITS AVAILABILITY TO OTHERS
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PEER PUNISHMENT
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RECIPROCITY
DESIRE TO HELP THOSE WHO YOU THINK HAVE ACTED WELL AND HARM THOSE WHO HAVE ACTED POORLY
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INEQUALITY AVERSION
DISLIKING OUTCOMES IN WHICH SOME PEOPLE GET MORE THAN OTHERS ESPECIALLY IF YOU’RE ON THE BOTTOM
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