Reference Group Behaviour and Economic Incentives: A Remark

Episode von Volkswirtschaft - Open Access LMU - Teil 01/03 von Ludwig-Maximilians-Universität München · 1. Januar 1981

People tend, in many ways, to behave like the others they see around them. This note´shows that such reference group behavior tends to reinforce incentives (economic or other) that influence individuals directly only marginally. The workings or such incentives is augmented what might be called a "social multiplier."

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