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Giving it now or later: altruism and discounting

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Author Info
Jaromir Kovarik (Universidad de Alicante)
Abstract

We experimentally study the e¤ect of time on altruism. By postponing payments in a standard Dictator game, subjects allocate a future payment between themselves and others. Since both the payoffs of the Dictator and the Receiver are delayed until the same time, standard intertemporal utility maximization would predict that waiting time should not affect the Dictator's choice. In this respect, we observe that Dictators' decisions are not affected, as long as the time interval between the decision and payment is not large. On the other hand, for large time gaps, subjectsbecome more self-interested.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2008-10.pdf
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File Function: Fisrt version / Primera version, 2008
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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2008-10.

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Length: 16 pages
Date of creation: Jun 2008
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2008-10

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Related research
Keywords: Altruism; Discounting; Dictator game; Intertemporal choice.;

Find related papers by JEL classification:
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
D64 - Microeconomics - - Welfare Economics - - - Altruism
D90 - Microeconomics - - Intertemporal Choice and Growth - - - General

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  1. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August. [Downloadable!] (restricted)
  2. Laibson, David, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 443-77, May.
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