An Experimental Investigation of Intrinsic Motivations for Giving
AbstractThis paper presents results from a modified dictator experiment aimed at distinguishing and quantifying the two intrinsic motivations for giving: warm glow and pure altruism. In particular, we implemented a within-subject experimental design with three treatments: (i) one, T1, where the recipient is the experimenters, which measures altruistic feelings towards the experimenters, (ii) the Crumpler and Grossman (2008) design, T2, in which the recipient is a charity, and the dictator’s donation crowds out one-for-one a donation by the experimenters, which aims at measuring warm glow giving, (iii) a third one, T3, with a charity recipient and no crowding out, which elicits both types of altruism. We use T1 to assess to what extent altruistic feelings towards the experimenters are a potential confound for measuring warm glow in T2. We find giving in T1 not to be significantly different from T2, suggesting that the Crumpler and Grossman design provides an upper bound estimate of warm glow giving. We provide a lower bound estimate based on the behavior of subjects whose warm glow giving in T2 is not confounded, that is, those who do not display altruistic feelings towards the experimenters in T1. We use these two estimates to quantify the portion of giving in T3 due to pure altruism and find it to be between 20% and 26% of endowment. We also propose a new method of detecting warm glow motivation based on the idea that in a random-lottery incentive (RLI) scheme, such as the one we employ, warm glow accumulates and this may lead to satiation, whereas purely altruistic motivation does not.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5461.
Length: 33 pages
Date of creation: Jan 2011
Date of revision:
Publication status: published in: Theory and Decision, 2014, 76 (1), 47-67. [Online First]
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Other versions of this item:
- Tonin, Mirco & Vlassopoulos, Michael, 2010. "An experimental investigation of intrinsic motivations for giving," Discussion Paper Series In Economics And Econometrics 1008, Economics Division, School of Social Sciences, University of Southampton.
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-12 (All new papers)
- NEP-CBE-2011-02-12 (Cognitive & Behavioural Economics)
- NEP-EXP-2011-02-12 (Experimental Economics)
- NEP-SOC-2011-02-12 (Social Norms & Social Capital)
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- Mirco Tonin & Michael Vlassopoulos, 2013.
"Sharing One's Fortune? An Experimental Study on Earned Income and Giving,"
CESifo Working Paper Series
4475, CESifo Group Munich.
- Tonin, Mirco & Vlassopoulos, Michael, 2013. "Sharing One's Fortune? An Experimental Study on Earned Income and Giving," IZA Discussion Papers 7294, Institute for the Study of Labor (IZA).
- Tonin, Mirco & Vlassopoulos, Michael, 2013.
"Experimental evidence of self-image concerns as motivation for giving,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 90(C), pages 19-27.
- Tonin, Mirco & Vlassopoulos, Michael, 2012. "Experimental Evidence of Self-Image Concerns as Motivation for Giving," IZA Discussion Papers 6388, Institute for the Study of Labor (IZA).
- Kyriaki Remoundou & Andreas C. Drichoutis & Phoebe Koundouri, 2013. "Isolating Warm Glow in Charitable Auction Giving," Grantham Research Institute on Climate Change and the Environment Working Papers 131, Grantham Research Institute on Climate Change and the Environment.
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