Advanced Search
MyIDEAS: Login to save this paper or follow this series

Altruism in Networks

Contents:

Author Info

  • Renaud Bourlès

    ()
    (Ecole Centrale Marseille (Aix-Marseille School of Economics), CNRS & EHESS)

  • Yann Bramoullé

    ()
    (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS)

Abstract

We provide the first theoretical analysis of altruism in networks. Agents are embedded in a fixed, weighted network and care about their direct friends. Given some initial distribution of incomes, they may decide to support their poorer friends. We study the resulting non-cooperative transfer game. Our analysis highlights the importance of indirect gifts, where an agent gives to a friend because his friend himself has a friend in need. We uncover four main features of this interdependence. First, we show that there is a unique profile of incomes after transfers, for any network and any utility functions. Uniqueness in transfers holds on trees, but not on arbitrary networks. Second, there is no waste in transfers in equilibrium. In particular, transfers flow through indirect paths of highest altruistic strength. Third, a negative shock on one agent cannot benefit others and tends to affect socially closer agents first. In addition, an income redistribution that decreases inequality ex-ante can increase inequality ex-post. Fourth, altruistic networks decrease income inequality. In contrast, more altruistic or more homophilous networks can increase inequality.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2013_-_nr_56.pdf#overlay-context=fr/recherche/documents-de-travail/altruism-networks
Download Restriction: no

Bibliographic Info

Paper provided by Aix-Marseille School of Economics, Marseille, France in its series AMSE Working Papers with number 1356.

as in new window
Length: 29 pages
Date of creation: Nov 2013
Date of revision: Nov 2013
Handle: RePEc:aim:wpaimx:1356

Contact details of provider:
Web page: http://www.amse-aixmarseille.fr/en
More information through EDIRC

Related research

Keywords: Aix-Marseille University (Aix-Marseille School of Economics); CNRS & EHESS;

Other versions of this item:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Alger, Ingela & Weibull, Jörgen, 2007. "Family ties, incentives and development: a model of coerced altruism," Working Paper Series in Economics and Finance 681, Stockholm School of Economics.
  2. Francis Bloch & Garance Genicot, 2005. "Informal Insurance in Social Networks," 2005 Meeting Papers, Society for Economic Dynamics 156, Society for Economic Dynamics.
  3. Ingela Alger & J�rgen W. Weibull, 2010. "Kinship, Incentives, and Evolution," American Economic Review, American Economic Association, American Economic Association, vol. 100(4), pages 1725-58, September.
  4. Marcel Fafchamps & Flore Gubert, 2005. "The Formation of Risk Sharing Networks," Economics Series Working Papers GPRG-WPS-037, University of Oxford, Department of Economics.
  5. Voorneveld, Mark, 2000. "Best-response potential games," Economics Letters, Elsevier, Elsevier, vol. 66(3), pages 289-295, March.
  6. Dubois, Pierre & Jullien, Bruno & Magnac, Thierry, 2005. "Formal and Informal Risk Sharing in LDCs: Theory and Empirical Evidence," IDEI Working Papers, Institut d'Économie Industrielle (IDEI), Toulouse 351, Institut d'Économie Industrielle (IDEI), Toulouse, revised Dec 2007.
  7. Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
  8. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, American Economic Association, vol. 99(1), pages 486-508, March.
  9. Harounan Kaziango, 2004. "Motives for Household Private Transfers in Burkina Faso," Working Papers, Economic Growth Center, Yale University 895, Economic Growth Center, Yale University.
  10. Townsend, R.M., 1991. "Risk and Insurance in Village India," University of Chicago - Economics Research Center, Chicago - Economics Research Center 91-3, Chicago - Economics Research Center.
  11. Joachim De Weerdt & Marcel Fafchamps, 2011. "Social Identity and the Formation of Health Insurance Networks," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 47(8), pages 1152-1177, June.
  12. Andrew D. Foster & Mark R. Rosenzweig, 2001. "Imperfect Commitment, Altruism, And The Family: Evidence From Transfer Behavior In Low-Income Rural Areas," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 389-407, August.
  13. Maurizio Mazzocco & Shiv Saini, 2012. "Testing Efficient Risk Sharing with Heterogeneous Risk Preferences," American Economic Review, American Economic Association, American Economic Association, vol. 102(1), pages 428-68, February.
  14. Ligon, Ethan & Schechter, Laura, 2011. "Motives for sharing in social networks," CUDARE Working Paper Series, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy 1120, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  15. Arrondel, Luc & Masson, Andre, 2006. "Altruism, exchange or indirect reciprocity: what do the data on family transfers show?," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier, Elsevier.
  16. Ballester, Coralio & Calvó-Armengol, Antoni & Zenou, Yves, 2005. "Who’s Who in Networks. Wanted: The Key Player," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5329, C.E.P.R. Discussion Papers.
  17. Bernheim, B Douglas & Stark, Oded, 1988. "Altruism within the Family Reconsidered: Do Nice Guys Finish Last?," American Economic Review, American Economic Association, American Economic Association, vol. 78(5), pages 1034-45, December.
  18. Mobius, Markus & Do, Quoc-Anh & Leider, Stephen & Rosenblat, Tanya, 2009. "Directed Altruism and Enforced Reciprocity in Social Networks," Scholarly Articles 3054685, Harvard University Department of Economics.
  19. Jean Mercier Ythier, 1993. "Équilibre général de dons individuels," Revue Économique, Programme National Persée, Programme National Persée, vol. 44(5), pages 925-950.
  20. Jean Mercier, 1993. "Équilibre général de dons individuels," Revue économique, Presses de Sciences-Po, Presses de Sciences-Po, vol. 0(5), pages 925-950.
Full references (including those not matched with items on IDEAS)

Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Altruism in Networks
    by maximorossi in NEP-LTV blog on 2013-11-27 12:56:46
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Martin Dufwenberg & Amrish Patel, 2014. "Reciprocity Networks and the Participation Problem," CESifo Working Paper Series 4890, CESifo Group Munich.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:aim:wpaimx:1356. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yves Doazan).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.