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Does anticipated aid create the need it wants to avoid? An experimental investigation

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Author Info
Gelkha Buitrago
Werner Güth ()
M. Vittoria Levati ()

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Abstract

A novel two-person "charity game" is used to experimentally investigate whether anticipation of help crowds out incentives to work, and therefore impulses to help. We distinguish two treatments differing in whether the causes of neediness are verifiable or not. Helping behavior does not vary significantly between treatments, but is positively correlated with dictator giving, suggesting idiosyncratic attitudes to help. Needy subjects are unaffected by anticipated help, but react optimally to chance.

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Paper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2006-24.

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Length: 35 pages
Date of creation: Oct 2006
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Handle: RePEc:esi:discus:2006-24

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Related research
Keywords: Experiments; Helping; Responsibility; Imperfect information;

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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  2. Hausman, Jerry A., 1985. "Taxes and labor supply," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 1, chapter 4, pages 213-263 Elsevier. [Downloadable!] (restricted)
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  5. Gary E. Bolton & Axel Ockenfels, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March. [Downloadable!] (restricted)
  6. Buchner, Susanne & Coricelli, Giorgio & Greiner, Ben, 2007. "Self-centered and other-regarding behavior in the solidarity game," Journal of Economic Behavior & Organization, Elsevier, vol. 62(2), pages 293-303, February. [Downloadable!] (restricted)
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