Once primarily in the domain of psychology and sociology, the study of norms has expanded in economics over the past decade. Economists have studied norms to explain why some communities can solve common problems while others cannot, why people are willing to punish others for not cooperating in public goods provision, why firms adopt particular price setting practices or do not cut wages during periods of high unemployment, and why countries will adopt different redistribution policies.
Norms are an important topic of study in economics because they offer a possible explanation for behavior that otherwise appears inconsistent with self-interest. They also provide a mechanism whereby agents can coordinate their behaviors and expectations in interactions where multiple equilibria exist.
Krupka’s research centered around making advances in the study of social influences on choice by using a mixture of exploratory research and formal hypothesis testing of existing and new theories. Results yielded insights into economic theory of choice in the presence of social norms by distinguishing preferences for norm compliance from social preferences.
The work also sought to characterize a set of practical regularities related to the emergence and transmission of social norms in order to yield feedback to economic models of norms themselves. This research also led to the development of a new tool—a Norms Elicitation Protocol—that social scientists across disciplines, as well as practitioners, can use to identify norms in a range of applications.
The broader impacts of her research will stem from the application of the work, which is of wide-ranging value to those who seek to understand and shape consumer, civic or corporate behaviors.