Social norms Quote by Dan Ariely
““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.””
About This Quote
Source Study: Behavioral Economics Experiment, Dan Ariely, 2012
People respond more positively to free offers because social norms dominate when money is absent, whereas market norms trigger skepticism.
In simple terms: Free feels more appealing than paid.
Key Takeaway
Leverage social norms.
Themes
social norms
market norms
motivation
Mood
analytical
insightful
Type
academic
practical
When to use this quote
- charity fundraising
- volunteer recruitment
- pricing strategies
Key Concepts
behavioral economics
psychology
incentives
Questions to Reflect On
- Why do we trust free more than paid?
- When can market norms be beneficial?
A Different Perspective
Free offers may be unsustainable financially.
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