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Social Preferences
“An economic choice may depend on your payoff and on how the total is divided.”
01 / SUMMARY
In short
Models of social preferences add fairness, altruism, reciprocity, or aversion to unequal outcomes alongside self-interest. People and situations assign different weights to these motives.
03 / SCENE
In the wild
Someone rejects a positive but highly unequal monetary offer because the split feels insulting.
04 / LIMIT
The limit
The concept does not replace all behavior with altruism or reveal one motive from a single choice.
FINAL NOTE
What remains
When modeling incentives, include how people may judge distribution and intentions.