Social learning under the labeling effect: Exploring travellers' behavior in social dilemmas

This paper presents results of a laboratory experiment, in which subjects made choices between public and private transportation when managing Personal Carbon Allowances (PCAs). The objectives of this study were twofold. Firstly, it was aimed at investigating the labeling effect under the social dilemma context. Secondly, it showed insights into the decision-making process when feedback about others' choices was provided. A combination of the labeling effect and feedback helped individuals change their commuting pattern and increase the number of trips by public transportation under the PCAs regime. Feedback on others' choices resulted in social learning and incentivized choice of public transportation more frequently in social dilemma situations.