Commodification and relational goods: Examples

This page is dedicated to real world examples of the interplay between commodification and relational goods

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Relational bads lead to economic irrationality...to a point

Yale researchers Arber Tasimi and Karen Wynn (2016) did an experiment in which children were shown pictures of people. The researchers then asked the child which offer they would accept: 1 sticker from person A or more stickers (respectively increasing the number offered from 2 to 4 to 8 to 16) from person B. Most children, as expected, chose the higher commodity reward. 

Then, the researchers added another element: The children were told person B had done something bad, like hitting someone or calling someone a bad name. In light of these relational "bads", the children began to choose the lower commodity reward from person A, instead a greater reward (more stickers) from person B. 

Only at a (hypothetical) commodity reward of 16 stickers did a (slim) majority of children take a higher commodity offer from the "bad" person (person B). This suggests that commodity rewards can offset relational "bads" at a certain point. However, another point is that relational "bads" lead to economic irrationality before hitting that point. In this case, children were less likely to do business with someone that is associated with relational "bads", even if that person offered the most commodity rewards (up to a point). 

The graph depicts the way relational "bads" can be offset by higher commodity rewards; however it also illustrates the way fewer children were willing to accept higher commodity rewards from a "bad" person. 

RELATIONAL BADS ARE ECONOMICALLY IRRATIONAL!

https://www.washingtonpost.com/news/wonk/wp/2016/04/25/the-disturbing-thing-you-learn-when-you-bribe-babies-with-graham-crackers/?tid=sm_tw

http://www.arbertasimi.com/uploads/6/1/2/0/61209685/tasimiwynncognition.pdf



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In a Georgia restaurant, a waiter helped a man with no hands eat his entire meal after overhearing the man ask for help.

http://www.cbsnews.com/news/waiters-response-to-man-trying-to-eat-without-hands-goes-viral/?linkId=23843347

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Relationships are fundamental to credit ratings. How does this compare to the notion of trust though?

https://economicsociology.org/2011/07/16/is-there-a-relationship-benefit-in-credit-ratings/

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