In this issue we feature 7 current papers on the theme of social capital, chosen by Fabio Sabatini (Università degli Studi di Roma “La Sapienza”):

1. Violent Conflict and Parochial Trust: Lab-in-the-Field and Survey Evidence By Katharina Werner; Ahmed Skali
2. Strengths of social ties modulate brain computations for third-party punishment By Zixuan Tang; Chen Qu; Yang Hu; Julien Benistant; Frederic Moisan; Edmund Derrington; Jean-Claude Dreher
3. Self‐control is negatively linked to prosociality in young children By Gladys Barragan-Jason; Astrid Hopfensitz
4. Navigating investment decisions with social connectedness : Implications for venture capital By Giang Nguyen; My Nguyen; Anh Viet Pham; Man Duy Marty Pham
5. Measuring Norms: A Comparison of the Predictive and Descriptive Power of Three Methods By Bogliacino, Francesco; Aycinena, Diego; Kimbrough, Erik
6. Intergroup Contact and Exposure to Information about Immigrants: Experimental Evidence By Patrick Dylong; Silke Uebelmesser
7. The Role of Friends in the Opioid Epidemic By Effrosyni Adamopoulou; Jeremy Greenwood; Nezih Guner; Karen A. Kopecky

1. Violent Conflict and Parochial Trust: Lab-in-the-Field and Survey Evidence

   By:	Katharina Werner (University of Passau); Ahmed Skali (University of Groningen & GLO)
   Abstract:	How does conflict exposure affect trust? We hypothesize that direct (firsthand) experience with conflict induces parochialism: trust towards out-groups worsens, but trust towards in-groups, owing to positive experiences of kin solidarity, may improve. Indirect exposure to conflict through third-party accounts, on the other hand, reduces trust toward everyone, owing to negativity bias. We find consistent support for our hypotheses in a lab-in-the-field experiment in Maluku, Indonesia, which witnessed a salient Christian-Muslim conflict during 1999-2002, as well as in three cross-country datasets exploiting temporal and spatial variation in exposure to violence. Our results help resolve a seeming contradiction in the literature and inform policies on resolving conflicts.
   Keywords:	trust, conflict, direct exposure, indirect exposure, religion, discrimination
   JEL:	C93 D74 Z12 Z13
   Date:	2023–12
   URL:	http://d.repec.org/n?u=RePEc:hic:wpaper:404&r=soc

2. Strengths of social ties modulate brain computations for third-party punishment

   By:	Zixuan Tang; Chen Qu; Yang Hu; Julien Benistant; Frederic Moisan (EM - emlyon business school); Edmund Derrington; Jean-Claude Dreher
   Abstract:	"Costly punishment of social norm transgressors by third-parties has been considered as a decisive stage in the evolution of human cooperation. An important facet of social relationship knowledge concerns the strength of the social ties between individuals, as measured by social distance. Yet, it is unclear how the enforcement of social norms is influenced by the social distance between a third-party and a norm violator at the behavioral and the brain system levels. Here, we investigated how social distance between punishers and norm-violators influences third-party punishment. Participants as third-party punished norm violators more severely as social distance between them increased. Using model-based fMRI, we disentangled key computations contributing to third-party punishment: inequity aversion, social distance between participant and norm violator and integration of the cost to punish with these signals. Inequity aversion increased activity in the anterior cingulate cortex and bilateral insula, and processing social distance engaged a bilateral fronto-parietal cortex brain network. These two brain signals and the cost to punish were integrated in a subjective value signal of sanctions that modulated activity in the ventromedial prefrontal cortex. Together, our results reveal the neurocomputational underpinnings of third-party punishment and how social distance modulates enforcement of social norms in humans."
   Keywords:	social ties, social norms, neurocomputation
   Date:	2023–06–28
   URL:	http://d.repec.org/n?u=RePEc:hal:journl:hal-04325737&r=soc

3. Self‐control is negatively linked to prosociality in young children

   By:	Gladys Barragan-Jason; Astrid Hopfensitz (EM - emlyon business school)
   Abstract:	"Human prosociality is a valuable but also deeply puzzling trait. While several studies suggest that prosociality is an impulsive behavior, others argue that self-control is necessary to develop prosocial behaviors. Yet, prosociality and self-control in children have rarely been studied jointly. Here, we measured self-control (i.e., delay-of-gratification) and prosociality (i.e., giving in a dictator game) in 250 4- to 6-year-old French schoolchildren. Contrary to previous studies, we found a negative relationship between waiting in the delay-of-gratification task and giving in the dictator game. The effect was especially pronounced when the partner in the dictator game was unknown compared with giving in a dictator game where the partner was a friend. Our results suggest that self-control is not always necessary to act prosocially. Future studies investigating whether and how such pattern develops across the lifespan and across cultures are warranted."
   Keywords:	self control, sharing, children, dictator game
   Date:	2023–10–01
   URL:	http://d.repec.org/n?u=RePEc:hal:journl:hal-04325644&r=soc

4. Navigating investment decisions with social connectedness : Implications for venture capital

   By:	Giang Nguyen (EM - emlyon business school); My Nguyen; Anh Viet Pham; Man Duy Marty Pham
   Abstract:	"This study examines how the geographical structure of social networks shapes venture capital (VC) investment decisions. We find that VC firms invest more in portfolio companies in socially connected regions. The effect is more pronounced among independent, smaller, less reputable, early–stage–focused VC firms and those not from a VC hub. We further document that social connectedness lowers the likelihood of a successful exit since it induces VC firms to undertake suboptimal investment decisions. Overall, our findings highlight the role of social connectedness in constituting the geographical differences in VC firms' capital allocation and investment outcomes."
   Keywords:	Social connectedness, Venture capital, Capital allocation, Investment performance
   Date:	2023–10–01
   URL:	http://d.repec.org/n?u=RePEc:hal:journl:hal-04325756&r=soc

5. Measuring Norms: A Comparison of the Predictive and Descriptive Power of Three Methods

   By:	Bogliacino, Francesco (Universidad Nacional de Colombia); Aycinena, Diego (Universidad del Rosario); Kimbrough, Erik
   Abstract:	We analyze and compare three methods of measuring norms: the Krupka and Weber (KW) coordination game, the two-step approach by Bicchieri and Xiao (BX), and a novel Binarized Scoring Method (BSM) we introduce that elicits the full distribution of normative beliefs. We test their effectiveness in two distinctive ways. First, we compare the fit and predictive power of the norms elicited by each method in 3 versions of the dictator game, which differ in how the pie is initially allocated. Then we use vignettes to assess the extent to which the methods can recover existing norms for various naturally occurring settings. We find that the KW method yields better predictive power within a norm-dependent utility model. All 3 methods effectively recover norms in field settings, although KW is more robust to false positives.
   Date:	2023–12–15
   URL:	http://d.repec.org/n?u=RePEc:osf:socarx:djfw5&r=soc

6. Intergroup Contact and Exposure to Information about Immigrants: Experimental Evidence

   By:	Patrick Dylong; Silke Uebelmesser
   Abstract:	We examine the relationship between beliefs about and attitudes towards immigrants and intergroup contact between natives and migrants in eastern Germany, a region characterized by anti-immigrant sentiment. Using probability-based survey data, we randomly vary respondents’ access to a signal about the true size of the immigrant population in the region. Respondents who receive the signal show more supportive attitudes toward immigration, with effect sizes being more pronounced for attitudes toward high-skilled immigrants. Importantly, estimating conditional average treatment effects shows that respondents who have less contact with immigrants prior to our intervention respond more strongly to the treatment. Additional findings suggest that the level of intergroup contact and biased beliefs about immigrants are complementary targets for information campaigns on immigration.
   Keywords:	beliefs about immigrants, immigration attitudes, intergroup contact, information campaign
   JEL:	C90 D83 F22 J15
   Date:	2023
   URL:	http://d.repec.org/n?u=RePEc:ces:ceswps:_10808&r=soc

7. The Role of Friends in the Opioid Epidemic

   By:	Effrosyni Adamopoulou (ZEW); Jeremy Greenwood (University of Pennsylvania); Nezih Guner (Centro de Estudios Monetarios y Financieros (CEMFI)); Karen A. Kopecky (Federal Reserve Bank of Cleveland)
   Abstract:	The role of friends in the US opioid epidemic is examined. Using data from the National Longitudinal Survey of Adolescent Health (Add Health), adults aged 25-34 and their high school best friends are focused on. An instrumental variable technique is employed to estimate peer effects in opioid misuse. Severe injuries in the previous year are used as an instrument for opioid misuse in order to estimate the causal impact of someone misusing opioids on the probability that their best friends also misuse. The estimated peer effects are significant: Having a best friend with a reported serious injury in the previous year increases the probability of own opioid misuse by around 7 percentage points in a population where 17 percent ever misuses opioids. The effect is driven by individuals without a college degree and those who live in the same county as their best friends.
   Keywords:	opioid, friends, instrumental variables, Add Health, severe injuries, peer-group effects
   JEL:	C26 D10 I12 J11
   Date:	2024–01
   URL:	http://d.repec.org/n?u=RePEc:eag:rereps:38&r=soc

This nep-soc issue is ©2023 by Fabio Sabatini. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.

General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <[email protected]>. Put “NEP” in the subject, otherwise your mail may be rejected.

NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.