TY  - JOUR
AU  - Lazear,Edward
AU  - Malmendier,Ulrike
AU  - Weber,Roberto
TI  - Sorting, Prices, and Social Preferences
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12041
PY  - 2006
Y2  - February 2006
UR  - http://www.nber.org/papers/w12041
L1  - http://www.nber.org/papers/w12041.pdf
N1  - Author contact info:
Edward P. Lazear
Graduate School of Business
Stanford University
Stanford, CA 94305
Tel: 650/723-9136
Fax: 650/723-0498
E-Mail: lazear@stanford.edu

Ulrike Malmendier
Department of Economics
549 Evans Hall # 3880
University of California, Berkeley
Berkeley, CA 94720-3880
Tel: 510-642-5038
E-Mail: ulrike@econ.berkeley.edu

Roberto Weber
Universität Zürich
E-Mail: weber.roberto.a@gmail.com
AB  - What impact do social preferences have in market-type settings where individuals can sort in response to relative prices? We show that sorting behavior can distinguish between individuals who like to share and those who share but prefer to avoid the sharing environment altogether. In four laboratory experiments, prices and social preferences interact to determine the composition of sharing environments: Costless sorting reduces the number of sharers, even after inducing positive reciprocity. Subsidized sharing increases entry, but mainly by the least generous sharers. Costly sharing reduces entry, but attracts those who share generously. We discuss implications for real-world giving with sorting.
ER  -