social norms
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
Back to top
Back to top
Abstract
The function of a social norm is to coordinate people's expectations in interactions that possess multiple equilibria. Norms govern a wide range of phenomena, including property rights, contracts, bargains, forms of communication, and concepts of justice. Norms impose uniformity of behaviour within a given social group, but often vary substantially among groups. Over time norm shifts may occur, prompted either by changes in objective circumstances or by subjective changes in perceptions and expectations. The dynamics of this process can be modelled using evolutionary game theory, which predicts that some norms are more stable than others in the long run.
Keywords
asymmetric information; conventions vs norms; coordination games; evolution of norms; expectations; fairness; Hume, D.; local conformity/global diversity effect; multiple equilibria; optimal contracts; punctuated equilibrium effect; reputation; signalling; social capital; social norms; stochastic volatility; stochastically stable norms; transaction costs
Back to top
How to cite this article
Young, H. Peyton. "social norms." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 25 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_S000466> doi:10.1057/9780230226203.1563

Bookmark
Print
Add to Delicious
