Measuring the Welfare Effects of Shame and Pride
American Economic Review
vol. 112,
no. 1, January 2022
(pp. 122-68)
Abstract
Public recognition is frequently used to motivate desirable behavior, yet its welfare effects—such as costs of shame or gains from pride—are rarely measured. We develop a portable empirical methodology for measuring and monetizing social image utility, and we deploy it in experiments on exercise and charitable behavior. In all experiments, public recognition motivates desirable behavior but creates highly unequal image payoffs. High-performing individuals enjoy significant utility gains, while low-performing individuals incur significant utility losses. We estimate structural models of social signaling, and we use the models to explore the social efficiency of public recognition policies.Citation
Butera, Luigi, Robert Metcalfe, William Morrison, and Dmitry Taubinsky. 2022. "Measuring the Welfare Effects of Shame and Pride." American Economic Review, 112 (1): 122-68. DOI: 10.1257/aer.20190433Additional Materials
JEL Classification
- C93 Field Experiments
- D64 Altruism; Philanthropy; Intergenerational Transfers
- D82 Asymmetric and Private Information; Mechanism Design
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making