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Equity versus Warm Glow in Intergenerational Giving

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  • Sadrieh, A.

    (Tilburg University, Center for Economic Research)

Abstract

In different treatments of an intergenerational common resource experiment, monetary payoff maximization by each generation causes either negative or positive externalities for future generations.Two behavioral types have been observed previously in single generation games: equity motivated individuals enjoy giving to the needy and taking from (not giving to) the prosperous, while warm glow altruists enjoy giving unconditionally.In the examined intergenerational game, observed behavior is not consistent with the equity motive.Roughly half of the subjects maximize own monetary payoffs, while the others exhibit altruistic behavior consistent with a model of warm glow giving with constant altruistic sacrifices across treatments.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2003-35.

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Date of creation: 2003
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Handle: RePEc:dgr:kubcen:200335

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Web page: http://center.uvt.nl

Related research

Keywords: equity capital; altruism; sustainable development; natural resources;

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  1. Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer, vol. 27(2), pages 269-299.
  2. Abbink, Klaus & Irlenbusch, Bernd & Renner, Elke, 2000. "The moonlighting game: An experimental study on reciprocity and retribution," Journal of Economic Behavior & Organization, Elsevier, vol. 42(2), pages 265-277, June.
  3. Fischer, Maria-Elisabeth & Irlenbusch, Bernd & Sadrieh, Abdolkarim, 2004. "An intergenerational common pool resource experiment," Journal of Environmental Economics and Management, Elsevier, vol. 48(2), pages 811-836, September.
  4. Guth, Werner & Schmittberger, Rolf & Schwarze, Bernd, 1982. "An experimental analysis of ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 367-388, December.
  5. Guth, Werner, 1995. "On ultimatum bargaining experiments -- A personal review," Journal of Economic Behavior & Organization, Elsevier, vol. 27(3), pages 329-344, August.
  6. Robert Slonim & Alvin E. Roth, 1998. "Learning in High Stakes Ultimatum Games: An Experiment in the Slovak Republic," Econometrica, Econometric Society, vol. 66(3), pages 569-596, May.
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Cited by:
  1. Galinato, Gregmar I., 2011. "Endogenous property rights regimes, common-pool resources and trade," Ecological Economics, Elsevier, vol. 70(5), pages 951-962, March.

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