ICES Seminar in Experimental Economics and Game Theory
The Impact of Narratives on Opinions: Evidence Regarding Negative Externalities
Friday, February 3, 2023 12:00 PM to 1:00 PM EST
Vernon Smith Hall (formerly Metropolitan Building), 5183
The ICES Seminar in Experimental Economics and Game Theory of the Spring 2023 semester will feature:
Santa Clara University
The Impact of Narratives on Opinions: Evidence Regarding Negative Externalities
Abstract
Fairness opinions have implications for acceptable economic action. To determine the aspects of an economic transaction which might impact fairness beliefs in the context of a negative environmental externality, we use a factorial vignette experimental design to randomize seven framing- and narrative-elements within five separate scenarios that describe such a transaction. On average, only 21 percent of participants rate the action of an externality-generating entity as fair. More importantly, we explore whether the framing of the welfare transfer inherent to externalities impacts fairness ratings. Of the framings used, only a passive framing, characterizing external costs as mere byproducts of economic activity, is found to impact fairness opinions. The scenario used to introduce the externality is also impactful, as is the type of firm that is generating the external cost, the availability of substitutes in production or consumption, and whether the externality is produced by a firm or a consumer. Further, participants who are promarket, believe that people have the right to dominate the environment, have a bachelor’s degree, have taken two or more economics courses, and identify as politically authoritarian believe the actions of the entity are fairer than do their counterparts.
For more information about the Seminar Series, please visit the Seminar Schedule homepage.
