We present a laboratory experiment that measures the effects of induced group identity on social preferences. We find that when participants are matched with an ingroup member, they show a 47 percent increase in charity concerns and a 93 percent decrease in envy. Likewise, participants are 19 percent more likely to reward an ingroup match for good behavior, but 13 percent less likely to punish an ingroup match for misbehavior. Furthermore, participants are significantly more likely to choose social-welfare-maximizing actions when matched with an ingroup member. All results are consistent with the hypothesis that participants are more altruistic toward an ingroup match. (JEL C91, D03, Z13)

We design a field experiment to explore the use of social comparison to increase contributions to an online community. We find that, after receiving behavioral information about the median user's total number of movie ratings, users below the median demonstrate a 530 percent increase in the number of monthly movie ratings, while those above the median decrease their ratings by 62 percent. When given outcome information about the average user's net benefit score, above-average users mainly engage in activities that help others. Our findings suggest that effective personalized social information can increase the level of public goods provision. (JEL C93, H41, L82)

To explore the effects of different incentives on crowdsourcing participation and submission quality, we conduct a field experiment on Taskcn, a large Chinese crowdsourcing site using all-pay auction mechanisms. In our study, we systematically vary the size of the reward, as well as the presence of a soft reserve, or early high-quality submission. We find that a higher reward induces significantly more submissions and submissions of higher quality. In comparison, we find that high-quality users are significantly less likely to enter tasks where a high quality solution has already been submitted, resulting in lower overall quality in subsequent submissions in such soft reserve treatments.

No abstract

The issue of one's identity has loomed large recently and has unfortunately been used more and more as a wedge to separate subgroups. It is important to understand the ramifications of identity, both to limit the negative consequences (such as so-called identity politics) and to be able to use one's sense of identity as a positive force in the world. What are effective approaches to allow positive identities and pride about one's social identity to be reinforced for the greater good? Recent work suggests that some forms of team competition can induce greater effort, which can be applied to areas such as microlending, charitable giving, and organization of the gig economy. And yet many fascinating questions remain; for example, what is the interaction of salience, social norms, and preferences on the effects of social identity in our society? Expected final online publication date for the Annual Review of Economics, Volume 12 is August 3, 2020. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.