Market Norms vs Social Norms
I’m reading, “Predictably Irrational: The Hidden Forces That Shape Our Decisions” by Dan Ariely (his blog and website here). It’s fun and insightful, with plenty of fodder for examining our common sense decisions.
For fear of not being able to articulate the author’s more comprehensive argument, I’d like to simply share this one example (p.71):
…. There are many examples to show that people will work more for a cause than for cash. A few years ago, for instance, the AARP asked some lawyers if they would offer less expensive services to needy retirees, at something like $30 an hour. The lawyers said no. Then the program manager from AARP had a brilliant idea: he asked the lawyers if they would offer free services to needy retirees. Overwhelmingly, the lawyers said yes.
What was going on here? How could zero dollars be more attractive than $30? When money was mentioned, the lawyers used market norms and found the offer lacking, relative to their market salary. When no money was mentioned they used social norms and were willing to volunteer their time. Why didn’t they just accept the $30, thinking of themselves as volunteers who received $30? Because once market norms enter our considerations, the social norms depart.
Food for thought, happy Thursday!
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