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A social norm is a shared understanding within a community that dictates how individuals are expected to behave toward one another in specific situations.

Definition of Social Norm

Set of rules and expectations imposed on agents in order to incentivize members of a group to forgo self-interest in favor of collective goals. Norms’ effects are optimized when they are internalized by individuals. This make them effective in rewarding selfless acts while punishing selfish ones.

Norms and Sanctions

Social norms can range from personal interactions to behavior among strangers. For instance, in many cultures, giving birthday gifts to close friends and family is a common social norm. Similarly, the convention of 'waiting in line' is a widespread social norm that governs behavior even among people who do not know each other.

Examples of Social Norms

The norm of reciprocity is a powerful, unwritten social rule that creates an expectation for individuals to repay in kind what they have received from others. This social norm obligates people to return favors, gifts, and assistance, and it is a fundamental principle that facilitates trust and cooperation in social and economic exchanges.

Norm of Reciprocity

Social norms are demonstrated through common behaviors in society. For example, the practice of giving gifts to close friends and family on their birthdays is a widely accepted norm in many communities. Another example is the convention of 'waiting in line,' which is a norm that applies even among strangers to maintain order.

Examples of Social Norms: Gift-Giving and Queuing

Social norms can apply across different social distances, governing behavior both within close personal circles, such as the tradition of giving birthday gifts to family, and in public among strangers, such as the convention of queuing.

Scope of Social Norms: From Personal Relationships to Strangers

Which of the following scenarios best exemplifies a social norm?

Analyze the following scenario. Explain the behavior of the established villagers and their reaction to the newcomer by describing the type of unwritten, shared expectation that is being violated.

Analyzing Community Fishing Practices

A city ordinance requiring residents to sort their trash for recycling is considered a social norm because it establishes an expected behavior for the entire community.

Match each scenario with the type of rule or behavior it best represents.

Explain the key difference between a social norm and a formal law. Provide a clear example of each to illustrate your explanation.

Distinguishing Social Norms from Formal Laws

On a specific stretch of highway, the legal speed limit is 65 mph. However, it is widely observed that nearly all drivers travel at 75 mph. Police enforcement is rare, and drivers who adhere to the 65 mph limit are often tailgated or flashed with headlights by other drivers. Based on the definition of a social norm, analyze whether the collective behavior of driving at 75 mph in this situation qualifies as one. Justify your conclusion.

Analyzing Collective Behavior on the Highway

A widespread behavior, such as people in a particular region consistently leaving a tip for their server at a restaurant, is considered a social norm primarily because...

Based on the scenario provided, analyze whether the 3:00 PM coffee break constitutes a social norm within the company. Justify your conclusion by connecting specific details from the case to the core components of what defines a social norm.

Navigating Workplace Culture

While individual decisions are driven by personal preferences—which encompass a person's likes, dislikes, attitudes, and beliefs, including social preferences like altruism—these preferences are not formed in isolation. They can be significantly shaped by prevailing social norms, which are the shared understandings within a group about how one should act. This interaction helps explain why people's choices often deviate from pure self-interest.

Influence of Social Norms on Individual Preferences

In scenarios modeled by public good games, an individual's willingness to contribute is often conditional upon observing the contributions of others. This behavior suggests the influence of social norms, such as the shared expectation that one should contribute to the group's welfare or a preference for fair outcomes, rather than decisions based on pure self-interest.

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