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Who's Naughty? Who's Nice? Experiments on Whether Pro-Social Workers are Selected Out of Cutthroat Business Environments

Levitt and List (2007) hypothesize that pro-social individuals will be selected out of cutthroat industries. To study this, we measure the pro-social preferences of individuals in two such industries, domain trading and online adult entertainment (pornography). Contrary to the selection hypothesis, we find that these individuals exhibit a high degree of pro-sociality. They exhibit more altruism, trust, trustworthiness, and honesty than the typical student subject. They also respond differently to shame-based incentives. We offer a theory of reverse selection that can rationalize these findings.