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Large Effects of Small Cues: Priming Selfish Economic Decisions
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Large Effects of Small Cues: Priming Selfish Economic Decisions

Avichai Snir, Dudi Levy, Dian Wang, Haipeng Allan Chen and Daniel Levy
ArXiv.org
Cornell University
05/06/2024
DOI: 10.48550/arxiv.2405.03893
url
https://doi.org/10.48550/arxiv.2405.03893View
Preprint (Author's original)This preprint has not been evaluated by subject experts through peer review. Preprints may undergo extensive changes and/or become peer-reviewed journal articles. Open Access

Abstract

Many experimental studies report that economics students tend to act more selfishly than students of other disciplines, a finding that received widespread public and professional attention. Two main explanations that the existing literature offers for the differences found in the behavior between economists and noneconomists are the selection effect, and the indoctrination effect. We offer an alternative, novel explanation. We argue that these differences can be explained by differences in the interpretation of the context. We test this hypothesis by conducting two social dilemma experiments in the US and Israel with participants from both economics and non-economics majors. In the experiments, participants face a tradeoff between profit maximization, that is the market norm and workers welfare, that is the social norm. We use priming to manipulate the cues that the participants receive before they make their decision. We find that when participants receive cues signaling that the decision has an economic context, both economics and non-economics students tend to maximize profits. When the participants receive cues emphasizing social norms, on the other hand, both economics and non-economics students are less likely to maximize profits. We conclude that some of the differences found between the decisions of economics and non-economics students can be explained by contextual cues.
Quantitative Finance - Economics

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