### 날짜 : 2024-03-25 15:41 ### 주제 : Social Preferences #economics ---- Social preferences describe the complex motivations that people have when making decisions, which are influenced not just by their own economic outcomes but also by their consideration of others and the social context within which they operate. These preferences contrast with the classical economic assumption that individuals act purely out of self-interest. Social preferences can encompass a range of behaviors and attitudes, including fairness, altruism, envy, reciprocity, inequity aversion, and social norms. Here's a deeper look at several key aspects of social preferences: ### Fairness People often prioritize fairness in their economic transactions, even at a cost to their own self-interest. For example, they might forgo a transaction altogether if they feel that it's unfair to others involved. Behavioral experiments like the Ultimatum Game have shown that people are willing to punish those who do not act fairly, even when it is costly to do so. ### Altruism Altruism refers to the concern for the welfare of others. An altruistic person derives some personal utility from improving someone else's welfare. This can be seen in charitable giving or helping strangers without any expectation of direct personal gain. Altruistic actions can be driven by a genuine concern for others or for indirect benefits like a higher social standing or self-satisfaction. ### Reciprocity Reciprocity is a social norm where individuals feel compelled to return favors or kindness. Positive reciprocity is when kindness is reciprocated with kindness, whereas negative reciprocity involves returning hostility or harm. Reciprocity is foundational in social exchanges and helps build trust within social and economic interactions. ### Inequity Aversion Inequity aversion is the preference for fairness and resistance to inequitable outcomes. People who experience discomfort from inequity are averse to situations where they receive either more or less than others. This aversion can explain certain economic behaviours like why some people prefer more equal salary distributions within companies. ### Envy Envy is a social preference that leads to dissatisfaction or resentment caused by a desire for others' possessions or achievements. Envy can lead to behavior aimed at improving one’s own position relative to others or even harming the envied person's position, potentially to one's own detriment. ### Social Norms Social norms are the unwritten rules about how to behave in society. They influence our behavior significantly because we care about our social image and want to avoid social sanctions. Conforming to social norms can mean behaving in a manner that doesn't line up with what would be considered rational in a purely economic sense but serves to maintain harmony and acceptance within a group. ### Trust Trust involves the belief or confidence in the reliability, truth, ability, or strength of someone or something. In economic transactions, trust reduces transaction costs and can facilitate trade. Situations that require trust can be modeled through games like the Trust Game, which show that many people are willing to trust others, even when it doesn't align with self-interested behavior. ### Application in Economic Models Incorporating social preferences into economic models offers a more realistic picture of human behavior. For instance, models that include fairness concerns can better predict wage setting within firms, or models that include trust and reciprocity can better predict trade patterns or the success of cooperative ventures. ### Conclusion Social preferences are central to understanding the complexities of human behavior in economic contexts. They broaden the scope of economic analysis to include social and moral considerations, which are crucial to understanding and predicting real-world behaviors. Considering social preferences is especially important in the design and implementation of public policy, business strategies, and negotiation tactics. They help explain why people may cooperate, why they sometimes punish antisocial behavior even at a personal cost, and how social and economic systems can remain stable based on mutual expectations and cooperative behaviors.