Experimental Economics

, Volume 15, Issue 4, pp 589–603

Are social preferences related to market performance?

Authors

    • Department of EconomicsMonash University
Article

DOI: 10.1007/s10683-012-9315-y

Cite this article as:
Leibbrandt, A. Exp Econ (2012) 15: 589. doi:10.1007/s10683-012-9315-y

Abstract

This paper combines laboratory with field data from professional sellers to study whether social preferences are related to performance in open-air markets. The data show that sellers who are more pro-social in a laboratory experiment are also more successful in natural markets: They achieve higher prices for similar quality, have superior trade relations and better abilities to signal trustworthiness to buyers. These findings suggest that social preferences play a significant role for outcomes in natural markets.

Keywords

Social preferencesMarket performanceExternal validityQuality misrepresentationOpen-air markets

JEL Classification

C91C93D49

Copyright information

© Economic Science Association 2012