Studies in the domains of strategy and risk preferences observe that subjects make more rational choices when they are first asked to predict the behaviour of others. However, less is known about the impact of prior predictions on social preferences. This study uses an experiment to discern whether ‘prediction then choice’ changes how subjects approach social preference dilemmas. In particular, the expectation is that choices become more pro-social after subjects either predict others’ actions or beliefs. The results confirm that prior predictions influence social preferences. Notably, subjects make more selfish choices when they are first asked to predict the action someone else would choose.

K.I.M. Rohde
hdl.handle.net/2105/49502
Business Economics
Erasmus School of Economics

P.K.D. Sharpe. (2019, November 8). Prior Predictions Influence Social Preferences. Business Economics. Retrieved from http://hdl.handle.net/2105/49502