The concept of 'Social Preferences' in behavioural economics includes:
A. Only self-regarding preferences
B. Only preferences over private consumption
C. Only preferences over absolute income
D. Preferences that take into account the payoffs or intentions of others, such as altruism, fairness and reciprocity
Answer: Option D
Solution (By JKSSB Mock Tests)
Social preferences encompass motives such as altruism, inequity aversion, reciprocity and spite that make an individual’s utility depend on the payoffs or actions of other people.
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