Essays in Applied Microeconomics

Abstract

Standard economic models typically assume that individuals behave independently and only care about their own interests. However, individuals often consider the impact of their actions on others, and care about how their own actions are perceived by others in making decisions. Indeed, aspects of individual behavior that at first glance appear puzzling when viewed through the lens of standard economic models can be explained by reputational or image concerns, social sanctions, coordination with others’ actions, or concern for the well-being of others. This thesis consists of three chapters, where I explore in each chapter how different social considerations may influence individual actions.