Conference Management, Happiness and Relational Goods

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Friendship and institutional roles: relational goods under pressure

Giampietro Parolin

Last modified: 2009-05-08

Abstract


Relational goods are recognized in economic theory as relevant entities that impact on economic transactions. Meanwhile they are seen as sources of happiness. Among relational goods friendship is a complex one related with trust, reputation and reciprocity but also with freedom and gratuity. In this work we focus our analysis on friendship trying to explore different uses economic agents can make of it. Beyond well-known negative use of it (i.e. corruption or collusion) or positive ones, there could be faded economic or business situations where friendship could be objectively or subjectively put in a trade-off versus other values.

 

Consider the particular case of being  agents appointed of an institutional role. In this case more than a resource - to be consumed enhancing economic transactions -friendship can put agents in a dilemma producing unpredictable outcomes. We show, through a survey, that despite a group of people share  a common vision on relational goods, the use they would make in a business situation might be quite different. Drafting lines of deeper analysis, the intensity of friendship (friends, acquaintances, others) and intensity of stake are hypothesis for explaining different outcomes.

 

 

 

Bibliography

 

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Gui B., Sugden R. (eds.), Economics and Social Interaction, Cambridge, 2005

 

Halpern J.J., The effect of friendship on bargaining: experimental studies of personal business transactions, Academy of Management Proceeding, 1992

 

Kadushin C., Friendship among the French financial elite, American sociological review, vol. 60 n. 2, apr. 1995

 

Nadler D.A., “Confessions of a trusted counselor”, Harvard Business Review, sept. 2005


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