Join us for the next Norms and Behavioral Change Talk titled "The Economics of Language" on Thursday, February 19th, 2026 at 1:00pm EST with Dr. Valerio Capraro of Middlesex University London!
Abstract: Many economic interactions are mediated by language: instructions, frames, and narratives that shape how agents interpret situations and choose strategies. In this talk, I argue that language should be treated as a quantifiable component of utility. I introduce the LENS model, in which linguistic content triggers emotions and suggests norms, which interact to shape strategic choices. Building on this framework, I propose a language-based utility function that formalizes how linguistic framing influences behavior. I derive testable predictions in the dictator game and evaluate them using a corpus of 107 experimental instructions. Linguistic features are quantified using both human ratings and deep-learning models, including BERT, MoralBERT, GPT. Across methods, GPT-based evaluations predict human giving behavior substantially better than traditional outcome-based social preferences. I further demonstrate the robustness of these results by extending the analysis to equity–efficiency trade-offs, ultimatum games, and corruption games. Overall, the findings suggest that language is a measurable driver of economic behavior, with implications for behavioral economics and the use of AI as a scientific measurement tool.
Zoom - Register here for Zoom Link.