User:Cagoodfellow/sandbox

Social Preferences in behavioral economics is a name given to a group of related concepts which help to explain people's actions and motivations in economic decision making that do not follow the classical economics assumption that all economic actors strictly pursue their own self interests (see Homo economicus). A person demonstrating a social preference not only cares about their own material resources, but also cares about the material resources allocated to others who are in some way relevant through means of a personal or professional association.

Types of Social Preferences
1. Reciprocity

2. Inequity Aversion

3. Altruism

4. Spiteful (or Envious)