Publications (referred journals)

Social Image Concerns and Reference Point Formation

The B.E. Journal of Theoretical Economics
Abstract.
This paper develops an axiomatic context-dependent model of social image concerns. Allowing for context-dependence based on choice sets, it examines how context-dependence impacts social image concerns, in particular how a decision maker exhibits various social emotions stemming from their intrinsic reference point, which may not be captured by conforming to social norms. To elicit the intrinsic reference point, this paper provides weaker versions of Strategic Rationality and Independence, in addition to the basic axioms, to characterize the model of the Reference-Dependent Image-Conscious utilitarian. This paper also examines how social emotions stemming from the intrinsic reference point are related to preference reversals as violations of the Weak Axiom of Revealed Preference (WARP). Finally, this paper considers the relationship between social image concerns and intrinsic reciprocity. The findings demonstrate that social image plays a large role and the model developed illustrates a condition in which cooperation is sustained in prisoner's dilemma games.
Idea & Approach
Purpose. 
  • We characterize a reference-dependent image-conscious behavior stemming from an endogenous reference point.
Methodology. 
  • axiomatic approach - preferences over menus
Findings. 
  • We elicit reference-dependent social emotions from image concerns (pride, shame, temptation, regret, spite, etc.).
  • Violations of WARP can occur.
Implications. 
  • Our model capture image-conscious behavior beyond conforming to social norms.
  • Social emotions stemming from social image can lead to reciprocal preferences. We study a cooperation under a one-shot Prisoner’s Dilemma game with a simple setting. 
Link
The left icon links the accepted version of paper (Google drive).