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Experimental Economics

, Volume 14, Issue 2, pp 203–222 | Cite as

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

  • Luigi Mittone
  • Matteo Ploner
Article

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.

Keywords

Social effects Reciprocity Incomplete contracts 

JEL Classification

C72 C91 

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Copyright information

© Economic Science Association 2010

Authors and Affiliations

  1. 1.CEELDepartment of Economics, University of TrentoTrentoItaly

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