Measuring the Welfare Effects of Shame and Pride
Luigi Butera, Robert Metcalfe, William Morrison, Dmitry Taubinsky
American Economic Review · 2022 · Volume 112 · Issue 1
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.
Keywords
Field Experiments, Altruism, Philanthropy, Intergenerational Transfers, Asymmetric and Private Information, Mechanism Design, Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
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