Social Norms and Norm Elicitation in Behavioral Economics

Abstract

Classical economic models assume individuals make rational decisions, but behavioral economics seeks to refine these models by considering cognitive limitations. A vital aspect of this refinement is the role of social norms—unwritten rules and commonly accepted behaviors within communities. Research indicates that social norms significantly influence decisions related to giving, tax compliance, cooperation, saving, and recycling. Game theory highlights the interconnectedness of individual choices, showing that people are more likely to adhere to social norms when they believe others will do the same. It also explains how norms counterbalance in communities, where deviations from expected behavior can result in social sanctions or reputational damage. Understanding how individuals perceive and respond to these norms is crucial. Personal experiences and moral values shape individual perceptions of social norms, leading to their diversity. Norm elicitation, a research method, explores how people interpret social norms and adjust their behaviors accordingly. The norm elicitation method enables researchers to understand individuals' attitudes toward social norms and to predict norm-based behaviors by allowing social norms to be measured separately from behavior in behavioral economics. This study aims to elucidate the concepts of social norms and norm elicitation, exploring their significance in behavioral economics.