AbstractWe develop a simple model of generous behavior. It is based on the premise that some people are generous, but everyone wants to appear generous. Although non-monetary donations are always inefficient, our model predicts donors to favor non-monetary donations when the inefficiency is relatively small and when the recipient is sufficiently rich. The model helps to explain the prevalence of volunteering, the nature of Christmas gifts, and the taboo against paying cash in return for friendly favors. The model also explains why it is socially more acceptable to ask for favors than for money.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 664.
Length: 23 pages
Date of creation: 01 Feb 2007
Date of revision:
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Altruism; Non-monetary gifts; Volunteering;
Find related papers by JEL classification:
- A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
- J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-23 (All new papers)
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- Dan Ariely & Anat Bracha & Stephan Meier, 2007.
"Doing good or doing well? Image motivation and monetary incentives in behaving prosocially,"
Working Papers, Federal Reserve Bank of Boston
07-9, Federal Reserve Bank of Boston.
- Dan Ariely & Anat Bracha & Stephan Meier, 2009. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," American Economic Review, American Economic Association, American Economic Association, vol. 99(1), pages 544-55, March.
- Ariely, Dan & Bracha, Anat & Meier, Stephan, 2007. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," IZA Discussion Papers 2968, Institute for the Study of Labor (IZA).
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