||"Social Image Concern and Reference Point Formation" |
|| Revised in January 2020.|
This paper provides an axiomatic foundation for social image concerns, in the presenceof context-dependence. This paper allows for context-dependence based on choice sets,and studies how context-dependence impacts social image concerns. In particular, thispaper investigates a decision maker who exhibits various social emotions stemming fromhis own intrinsic reference point, which may not be captured by conforming to social norm.By uniquely identifying the building blocks of the model, this paper studies a relationship between social image and choice-set effects in terms of pride-seeking preferences, shame-averse preferences, and temptation-driven preferences. Moreover, a relationship between image-conscious utility and outcome-based utility such as inequity aversion is discussed. A relationship between image-conscious utility and intention-based utility such as intrinsicreciprocity is also discussed.