Norm-based accounts of social behavior in economics typically reflect tradeoffs between maximization of own consumption utility and conformity to social norms. Theories of norm-following tend to assume that there exists a single, stable, commonly known injunctive social norm for a given choice setting and that each person has a stable propensity to follow social norms. We collect panel data on 1468 participants aged 11–15 years in Belfast, Northern Ireland and Bogotá, Colombia in which we measure norms for the dictator game and norm-following propensity twice at 10 weeks apart. We test these basic assumptions and find that norm-following propensity is stable, on average, but reported norms show evidence of change. We find that individual-level variation in reported norms between people and within people across time has interpretable structure using a series of latent transition analyses (LTA) which extend latent class models to a panel setting. The best fitting model includes five latent classes corresponding to five sets of normative beliefs that can be interpreted in terms of what respondents view as “appropriate” (e.g. equality vs. generosity) and how they view deviations (e.g. deontological vs. consequentialist). We also show that a major predictor of changing latent classes over time comes from dissimilarity to others in one’s network. Our application of LTA demonstrates how researchers can engage with heterogeneity in normative perceptions by identifying latent classes of beliefs and deepening understanding of the extent to which norms are shared, stable, and can be predicted to change. Finally, we contribute to the nascent experimental literature on the economic behavior of children and adolescents.

While economists recognize the important role of formal institutions in the promotion of trade, there is increasing agreement that institutions are typically endogenous to culture, making it difficult to disentangle their separate contributions. Lab experiments that assign institutions exogenously and measure and control individual cultural characteristics can allow for clean identification of the effects of institutions, conditional on culture, and help us understand the relationship between behavior and culture, under a given institutional framework. We focus on cultural tendencies toward individualism/collectivism, which social psychologists highlight as an important determinant of many behavioral differences across groups and people. We design an experiment to explore the relationship between subjects’ degree of individualism/collectivism and their willingness to abandon a repeated, bilateral exchange relationship in order to seek potentially more lucrative trade with a stranger, under enforcement institutions of varying strength. Overall, we find that individualists tend to seek out trade more often than collectivists. A diagnostic treatment and additional analysis suggests that this difference may reflect both differential altruism/favoritism to in-group members and different reactions to having been cheated in the past. This difference is mitigated somewhat as the effectiveness of enforcement institutions increases. Nevertheless we see that cultural dispositions are associated with willingness to seek out trade, regardless of institutional environment.

Agent-based simulations and human-subject experiments explore the emergence of respect for property in a specialization and exchange economy with costless theft. Software agents, driven by reciprocity and hill-climbing heuristics and parameterized to replicate humans when property is exogenously protected, are employed to predict human behavior when property can be freely appropriated. Agents do not predict human behavior in a new set of experiments because subjects innovate, constructing a property convention of “mutual taking” in 5 out of the 6 experimental sessions that allows exchange to crowd out theft. When the same convention is made available to agents, they adopt it and again replicate human behavior. Property emerges as a social convention that exploits the capacity for reciprocity to sustain trade.

A survey of instruction delivery and reinforcement methods in recent laboratory experiments reveals a wide and inconsistently reported variety of practices and limited research evaluating their effectiveness. Thus, we experimentally compare how methods of delivering and reinforcing experiment instructions impact subjects’ comprehension and retention of payoff-relevant information. We report a one-shot individual decision task in which non-money-maximizing behavior can be unambiguously identified and find that such behavior is prevalent in our baseline treatment which uses plain, but relatively standard experimental instructions. We find combinations of reinforcement methods that can eliminate half of non-money-maximizing behavior, and we find that we can induce a similar reduction via enhancements to the content of instructions. Residual non-money-maximizing behavior suggests that this may be an important source of noise in experimental studies.

The rapid growth of cultural evolutionary science, its expansion into numerous fields, its use of diverse methods, and several conceptual problems have outpaced corollary developments in theory and philosophy of science. This has led to concern, exemplified in results from a recent survey conducted with members of the Cultural Evolution Society, that the field lacks ‘knowledge synthesis’, is poorly supported by ‘theory’, has an ambiguous relation to biological evolution and uses key terms (e.g. ‘culture’, ‘social learning’, ‘cumulative culture’) in ways that hamper operationalization in models, experiments and field studies. Although numerous review papers in the field represent and categorize its empirical findings, the field's theoretical challenges receive less critical attention even though challenges of a theoretical or conceptual nature underlie most of the problems identified by Cultural Evolution Society members. Guided by the heterogeneous ‘grand challenges’ emergent in this survey, this paper restates those challenges and adopts an organizational style requisite to discussion of them. The paper's goal is to contribute to increasing conceptual clarity and theoretical discernment around the most pressing challenges facing the field of cultural evolutionary science. It will be of most interest to cultural evolutionary scientists, theoreticians, philosophers of science and interdisciplinary researchers.

Bølstad and Dinas (2017) propose a model of spatial voting, based on social identity theory, that suggests supporting a candidate/policy on the other side of the ideological spectrum has a disutility that is not accounted for by common spatial models. Unfortunately, the data they use cannot speak directly to whether the disutility arises because individuals perceive their ideology as a social identity. We present the results of an experimental study that measures the norm against crossing the ideological spectrum; tests the cost of doing so, controlling for spatial effects; and demonstrates that this cost increases with the salience and strength of identity norms. By demonstrating the norm mechanism for the disutility of crossing the ideological spectrum, we provide strong support for B&D's model.

We investigate in an economic experiment how people choose sides in disputes. In an eight-player side-taking game, two disputants at a time fight over an indivisible resource and other group members choose sides. The player with more supporters wins the resource, which is worth real money. Conflicts occur spontaneously between any two individuals in the group. Players choose sides by ranking their loyalties to everyone else in the group, and they automatically support the disputant they ranked higher. We manipulate participants’ information about other players’ loyalties and also their ability to communicate with public chat messages. We find that participants spontaneously and quickly formed alliances, and more information about loyalties caused more alliance-building. Without communication, we observe little evidence of bandwagon or egalitarian strategies, but with communication, some groups invented rank rotation schemes to equalize payoffs while choosing the same side to avoid fighting costs.