This paper identifies when other-regarding preferences (ORPs) such as trust, reciprocity and altruism will likely arise. We experimentally examine the influence of social distance and communication on ORPs in four countries. We demonstrate that country of origin significantly influences ORPs, but also find mixed support for the relationship between ORPs and social distance; increasing social distance has the expected negative effect in the individually oriented U.S., but its effects internationally are different. This interaction is explained by an individual's cultural orientation. Finally, we show strong evidence that personal but irrelevant communication significantly increases ORPs.
- Social distance