Social norms impact economic decisions from "summary" of The Economic Naturalist by Robert H. Frank
Social norms play a crucial role in shaping the economic decisions that individuals make. People often base their choices not only on rational calculations of costs and benefits but also on the expectations and perceptions of others around them. This is because humans are social beings who seek approval and validation from their peers. As a result, they are influenced by the prevailing norms and values within their social circles. Take the example of tipping in restaurants. While tipping is technically voluntary, it is considered a social norm in many cultures. Customers often feel pressured to leave a tip, not because they necessarily believe that the server deserves it, but because they do not want to be seen as stingy or rude by their dining companions. In this way, social norms around tipping impact the economic decision-making of individuals. Similarly, the concept of conspicuous consumption is another example of how social norms can inf...
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