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Can Concerns for Social Status Mitigate the ‘Lemons Problem’? Experimental Evidence from the Indian Caste Hierarchy
Journal of South Asian Development ( IF 0.9 ) Pub Date : 2019-06-25 , DOI: 10.1177/0973174119850952
Subhasish Dugar 1 , Haimanti Bhattacharya 1
Affiliation  

We conducted a lab-in-the-field experiment to analyse if and how information about an individual’s social status influences efficient choices in a two-party hidden information game in which trust and trustworthiness play a central role. Recruitment of subjects from three status groups based on the Indian caste system allows us to distinguish between identity-based and status-based preferences. We find that all status groups exhibit strong in-group favouritism which fosters efficiency. The decisions of subjects from the two lower-status groups align well with identity-based preferences as they treat their out-group co-players in a statistically equivalent manner. However, subjects from the top of the hierarchy exhibit behaviour consistent with status-based preferences as their propensity to choose efficient actions systematically declines with an increase in the distance between their status and their co-player’s status. Thus, the behaviour of the top-status group closely conforms to the actual social rankings of these caste groups in India, whereas the behaviour of lower-status groups displays a binary classification of people into ‘us’ and ‘them’.

中文翻译:

对社会地位的担忧能否缓解“柠檬问题”?来自印度种姓等级制度的实验证据

我们进行了一项现场实验室实验,以分析在信任和可信赖度发挥核心作用的两方隐藏信息博弈中,有关个人社会地位的信息是否以及如何影响有效选择。从基于印度种姓制度的三个身份群体中招募受试者使我们能够区分基于身份的偏好和基于身份的偏好。我们发现所有地位群体都表现出强烈的群体内偏好,从而提高了效率。来自两个较低地位群体的受试者的决定与基于身份的偏好非常吻合,因为他们以统计上等效的方式对待他们的外群体合作者。然而,来自层次结构顶部的受试者表现出与基于身份的偏好一致的行为,因为他们选择有效行动的倾向随着他们的地位和他们的合作者地位之间的距离的增加而系统地下降。因此,地位最高的群体的行为与印度这些种姓群体的实际社会排名密切相关,而地位较低的群体的行为则显示出将人们分为“我们”和“他们”的二元分类。
更新日期:2019-06-25
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