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Measuring the warm glow: players’ behaviour self declared happiness in trust game experiments

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Author Info
BECCHETTI LEONARDO
DEGLI ANTONI GIACOMO

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Abstract

We perform a standard trust game experiment in which questionnaires are alternatively administered to participants after the experiment and before even knowing the rules of the game. We find that self declared happiness is significantly affected by trustors’ contribution only when survey questions are answered after having played. This result contributes both to the empirical happiness and behavioural experimental literature. With respect to the first, we demonstrate that general questions on self declared life satisfaction evaluated over the entire life period are affected by most recent events. With respect to the second, we interpret our findings as supporting the existence of “warm glow” preferences. We think that our contribution has also important methodological consequences: warm glow preferences cannot just be tested with the standard approach inferring implied preference structures from players’ choices. Only when measuring ex post the effects on happiness of players’ contribution, net of the outcome of the game, we may conclude that their choice to contribute is due to altruistic and not to strategic motivations. Finally our finding is a confirmation of the importance of experience and not just procedural utility. In our experiment trustor happiness is not affected by the outcome of the game but by the specific pattern of chosen actions, irrespective of the final result.

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Paper provided by Tor Vergata University, CEIS in its series Departmental Working Papers with number 263.

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Date of creation: Dec 2007
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Handle: RePEc:rtv:ceiswp:263

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  1. Dohmen Thomas & Falk Armin & Huffman David & Sunde Uwe, 2008. "Homo Reciprocans: Survey Evidence on Behavioural Outcomes," Research Memoranda 007, Maastricht : ROA, Research Centre for Education and the Labour Market. [Downloadable!]
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