How can you measure social preferences in experimental economics?

1 Lab experiments

One of the most common ways to measure social preferences is to conduct lab experiments, where participants are randomly assigned to different treatments and face various choices or games that involve trade-offs between their own and others' payoffs. For example, you can use the dictator game, where one person decides how much of a given amount of money to share with another person, or the ultimatum game, where one person proposes a division of money and the other person can accept or reject it. By varying the parameters of the games, such as the stakes, the anonymity, the information, or the framing, you can test how different factors affect social preferences.

2 Field experiments

Another way to measure social preferences is to conduct field experiments, where participants are recruited from natural settings and face real-world situations that involve social interactions. For example, you can use the trust game, where one person sends some money to another person, who can then return some or none of it, or the public goods game, where several people contribute to a common pool that benefits everyone. By varying the context of the experiments, such as the location, the population, the incentives, or the feedback, you can test how social preferences vary across different environments and groups.

3 Survey methods

A third way to measure social preferences is to use survey methods, where participants are asked to report their opinions, beliefs, or intentions regarding social issues or scenarios. For example, you can use the social value orientation (SVO) measure, where participants choose between different allocations of points between themselves and another person, or the social dominance orientation (SDO) measure, where participants rate their agreement with statements about hierarchy and inequality. By comparing the survey responses with the actual behavior or outcomes of the participants, you can test how well social preferences are revealed or predicted by self-reports.

4 Neuroeconomic methods

A fourth way to measure social preferences is to use neuroeconomic methods, where participants are exposed to neuroimaging techniques, such as functional magnetic resonance imaging (fMRI) or electroencephalography (EEG), while they make decisions or observe outcomes that involve social interactions. For example, you can use the empathy-altruism hypothesis, where participants decide whether to help someone in need or not, or the inequity aversion hypothesis, where participants react to fair or unfair distributions of money. By measuring the brain activity or the neural correlates of the participants, you can test how social preferences are influenced or explained by cognitive and emotional processes.

5 Computational methods

A fifth way to measure social preferences is to use computational methods, where participants are modeled or simulated using mathematical or computer-based tools, such as game theory, agent-based models, or machine learning. For example, you can use the social preference function, where participants are assumed to have a utility function that depends on their own and others' payoffs, or the social network model, where participants are embedded in a network of connections that affect their behavior and outcomes. By estimating or calibrating the parameters or the rules of the models, you can test how social preferences are shaped or constrained by strategic and structural factors.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?