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A Kuhn–Tucker model for behaviour in dictator games

Author

Listed:
  • Peter G. Moffatt

    (University of East Anglia)

  • Graciela Zevallos

    (University of East Anglia)

Abstract

We consider a dictator game experiment in which dictators perform a sequence of giving tasks and taking tasks. The data are used to estimate the parameters of a Stone–Geary utility function over own-payoff and other’s payoff. The econometric model incorporates zero observations (e.g. zero-giving or zero-taking) by applying the Kuhn–Tucker theorem and treating zeros as corner solutions in the dictator’s constrained optimisation problem. The method of maximum simulated likelihood (MSL) is used for estimation. We find that selfishness is significantly lower in taking tasks than in giving tasks, and we attribute this difference to the “cold prickle of taking”.

Suggested Citation

  • Peter G. Moffatt & Graciela Zevallos, 2021. "A Kuhn–Tucker model for behaviour in dictator games," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 7(2), pages 226-243, December.
    • Handle: RePEc:spr:jesaex:v:7:y:2021:i:2:d:10.1007_s40881-021-00110-y
    DOI: 10.1007/s40881-021-00110-y
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    More about this item

    Keywords

    Dictator games; Taking games; Kuhn–Tucker conditions; Experimetrics;
    All these keywords.

    JEL classification:

    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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