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

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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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Bibliographic Info

Paper provided by University of Canterbury, Department of Economics and Finance 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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Keywords: Experimental economics; dictator game; indirect reciprocity; reputation; generosity;

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References

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Cited by:
  1. Maroš Servátka & Steven Tucker & Radovan Vadovic, 2008. "Words Speak Louder Than Money," Working Papers in Economics 08/18, University of Canterbury, Department of Economics and Finance.
  2. Herne, Kaisa & Lappalainen, Olli & Kestilä-Kekkonen, Elina, 2013. "Experimental comparison of direct, general, and indirect reciprocity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 45(C), pages 38-46.
  3. Tammi, Timo, 2013. "Dictator game giving and norms of redistribution: Does giving in the dictator game parallel with the supporting of income redistribution in the field?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 43(C), pages 44-48.

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