Is guidance by social norms compatible with rationality? Jon Elster has argued in The Cement of Society that there is a fundamental contrast between rationality and conformity to social norms. The context of study is the problem of collective action, with special emphasis on collective wage bargaining. In such negotiations, the appeal to social norms rather than to self-interest can block agreement. Suppose one union is committed to the norm of equal pay for equal work; another one appeals to the (...) norm of equal pay for everybody, regardless of the type of work. ‘In the presence of competing norms that favor different groups, the self-righteousness conferred by belief in a norm can lead to a bargaining impasse.'In confrontations between individuals, codes of honor can produce similar problems. It is in no one's interest to face a colleague over the barrel of a gun because one has made a nasty remark about his latest book, but if the code demands that one fight it out, the challenge must be accepted. (shrink)