Date and Location: Monday, November 21, 12:00, A 0.23
Presenter: Nikita Krugljakov
Title:  Social closure and social norms - an experimental test of Coleman (1988)
Authors: Nikita Krugljakov & Martin Strobel (AE1 / AE1)

Abstract: Coleman (1988) proposes that social structure is important to effectively internalize external effects. We provide a direct test of Coleman's proposition by determining experimentally whether social closure is sufficient to discipline subjects not to take money from others. Shareholder A chooses the amount of money to take from stakeholders B1 and B2. Stakeholders observe the amount taken. In the closure treatment stakeholders communicate with each other. In the noclosure treatment each stakeholder communicates with a bystander who is unaffected by A's choice. After the communication stakeholders individually choose how much to invest in punishing the shareholder. Punishment investment is costly.