ELEMENTS OF A SCRIPT FOR FRIENDSHIP IN TRANSACTIONS

Social norms constrain people's behaviors in transactions, but such no rms are rarely investigated. Script theory provides a coherent, holist ic structure for understanding socially mediated behaviors. This study proposes terms of a script for the pricing behavior of transactors wh en friendship is considered. The script generates testable hypotheses, which are studied in three lab-based experiments. Vignette studies co nsidered the effect of friendship on two-party transactions and reveal ed consistent behaviors. Without discussion, subjects exhibit consiste nt agreement for what constitutes appropriate pricing far friends and for strangers in different contexts: when pricing a variety of commodi ties for a transaction, when acting as agents for a friend or a strang er, and when observing others engaged in such transactions.