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Does Generosity Generate Generosity? An Experimental Study of Reputation Effects in a Dictator Game

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Author Info
Maroš Servátka () (University of Canterbury)

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Abstract

This paper explores how information about paired subject's previous action affects one's own behavior in a dictator game. The first experiment puts dictators in two environments where they can either give money to the paired player or take money away from them: one where the recipient is a stranger and the other where the dictator has information on the recipient's reputation. Contrary to anecdotal evidence, the statistical tests show that the dictator's behavior toward a stranger is not statistically significantly different from their behavior toward an individual with an established reputation. The findings arise because a high proportion of dictators acted purely in their own self interest in both treatments. In the second experiment the dictators' choices were restricted to only generous actions. In such environment the dictators sent more money on average to recipients with a reputation for being generous than to recipients without a reputation.

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File URL: http://www.econ.canterbury.ac.nz/RePEc/cbt/econwp/0703.pdf
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Publisher Info
Paper provided by University of Canterbury, Department of Economics in its series Working Papers in Economics with number 07/03.

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Length: 28 pages
Date of creation: 01 Oct 2007
Date of revision:
Handle: RePEc:cbt:econwp:07/03

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Related research
Keywords: Experimental economics; dictator game; indirect reciprocity; reputation; generosity;

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
D64 - Microeconomics - - Welfare Economics - - - Altruism

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    Other versions:
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  4. Max Albert & Werner Güth & Erich Kirchler & Boris Maciejovsky, 2002. "Are we nice(r) to nice(r) people? - An Experimental Analysis," Papers on Strategic Interaction 2002-15, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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  9. James C. Cox, 2007. "Trust and Reciprocity: Implications of Game Triads and Social Contexts," Experimental Economics Center Working Paper Series 2007-08, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University, revised May 2008. [Downloadable!]
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  17. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July. [Downloadable!] (restricted)
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