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Revealed Altruism

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  • Cox, James C.
  • Friedman, Daniel
  • Sadiraj, Vjollca

Abstract

This pap er develops a theory of revealed preferences over oneís own and othersímonetary payo§s. We intro duce ìmore altruistic thanî(MAT), a partial ordering over preferences, and interpret it with known parametric mo dels. We also intro duce and illustrate ìmore generous thanî (MGT), a partial ordering over opp ortunity sets. Several recent discussions of altruism fo cus on two player extensive form games of complete information in which the Örst mover (FM) cho oses a more or less generous opp ortunity set for the second mover (SM). Here recipro city can b e formalized as the assertion that an MGT choice by the FM will elicit MAT preferences in the SM and, fur- thermore, that the e§ect on preferences is stronger for acts of commision than acts of ommision by FM. We state and prove prop ositions on the observable consequences of these assertions. Then we test those prop ositions using exist- ing data from investment games with dictator controls and Stackelb erg games and new data from Stackelb erg mini-games. The test results provide supp ort for the theory of revealed altruism.

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Bibliographic Info

Paper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt6rb5t4mc.

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Date of creation: 14 Sep 2009
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Handle: RePEc:cdl:ucscec:qt6rb5t4mc

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Keywords: Revealed altruism; revealed preferences; more altruistic than; more generous than;

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  1. Charness, Gary & Rabin, Matthew, 2001. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt4qz9k8vg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  2. Georg Kirchsteiger & Martin Dufwenberg, 2004. "A theory of sequential reciprocity," ULB Institutional Repository, ULB -- Universite Libre de Bruxelles 2013/5899, ULB -- Universite Libre de Bruxelles.
  3. Ronald Bosman & Frans van Winden, 2002. "Emotional Hazard in a Power-to-take Experiment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(476), pages 147-169, January.
  4. Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, Elsevier, vol. 54(2), pages 293-315, February.
  5. Sonnemans, Joep & Dijk, Frans van & Winden, Frans van, 2006. "On the dynamics of social ties structures in groups," Journal of Economic Psychology, Elsevier, Elsevier, vol. 27(2), pages 187-204, April.
  6. Cox, J. & Friedman, D. & Gjerstad, S., 2006. "A Trackable Model of Reciprocity and Fairness," Purdue University Economics Working Papers, Purdue University, Department of Economics 1181, Purdue University, Department of Economics.
  7. Georg Kirchsteiger & Ernst Fehr & Arno Riedl, 1993. "Does Fairness Prevent Market Clearing? An Experimental Investigation," ULB Institutional Repository, ULB -- Universite Libre de Bruxelles 2013/5927, ULB -- Universite Libre de Bruxelles.
  8. Abbink, Klaus & Irlenbusch, Bernd & Renner, Elke, 2000. "The moonlighting game: An experimental study on reciprocity and retribution," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 42(2), pages 265-277, June.
  9. Huck, Steffen & Müller, Wieland & Normann, Hans-Theo, 1999. "Stackelberg beats Cournot: On collusion and efficiency in experimental markets," SFB 373 Discussion Papers, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes 1999,32, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  10. Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics, University of Munich, Department of Economics 20650, University of Munich, Department of Economics.
  11. James C. Cox & Vjollca Sadiraj, . "Direct Tests of Models of Social Preferences and a New Model," Experimental Economics Center Working Paper Series, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University 2006-13, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University, revised Jul 2010.
  12. Ernst Fehr & Simon Gaechter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," CESifo Working Paper Series, CESifo Group Munich 336, CESifo Group Munich.
  13. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 3(4), pages 367-388, December.
  14. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, Econometric Society, vol. 70(2), pages 737-753, March.
  15. David K. Levine, 1998. "Modeling Altruism and Spitefulness in Experiment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(3), pages 593-622, July.
  16. Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, Elsevier, vol. 10(1), pages 122-142, July.
  17. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, American Economic Association, vol. 90(1), pages 166-193, March.
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