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Altruism and Donations

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Author Info
Sao-Wen Cheng ()
Andreas Wagener

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Abstract

We examine two types of altruism and their implications for voluntary giving. Philanthropists are altruists who wish to enhance the well-being of others, while individuals with merit-good preferences only wish to further the consumption of certain merit goods by others. Philanthropic donors prefer to make cash donations, while donors with merit-good preferences prefer to give in kind. The equilibrium of a donations-game with a philanthropic donor and recipients is efficient, while the equilibrium of a game with a single donor with merit-good preferences is not. Both equilibria are inefficient if there are multiple donors with strategic interaction amongst them.

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File URL: http://www.uni-siegen.de/fb5/vwl/repec/sie/papers/92-00.pdf
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Publisher Info
Paper provided by Universität Siegen, Fachbereich Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht in its series Volkswirtschaftliche Diskussionsbeitraege with number 92-00.

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Length: 23 pages
Date of creation: Dec 2000
Date of revision:
Handle: RePEc:sie:siegen:92-00

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Web page: http://www.uni-siegen.de/fb5/vwl/research/diskussionsbeitraege/

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Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
D64 - Microeconomics - - Welfare Economics - - - Altruism

References listed on IDEAS
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  1. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Maria Racionero, 2000. "Optimal Redistribution with Unobservable Preferences for an Observable Merit Good," International Tax and Public Finance, Springer, vol. 7(4), pages 479-501, August. [Downloadable!] (restricted)
    Other versions:
  3. Bernheim, B Douglas & Bagwell, Kyle, 1988. "Is Everything Neutral?," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 308-38, April. [Downloadable!] (restricted)
    Other versions:
  4. Peltzman, Sam, 1973. "The Effect of Government Subsidies-in-Kind on Private Expenditures: The Case of Higher Education," Journal of Political Economy, University of Chicago Press, vol. 81(1), pages 1-27, Jan.-Feb.. [Downloadable!] (restricted)
  5. Smith, Vincent H. & Kehoe, Michael R. & Cremer, Mary E., 1995. "The private provision of public goods: Altruism and voluntary giving," Journal of Public Economics, Elsevier, vol. 58(1), pages 107-126, September. [Downloadable!] (restricted)
  6. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec.. [Downloadable!] (restricted)
  7. Besley, Timothy, 1988. "A simple model for merit good arguments," Journal of Public Economics, Elsevier, vol. 35(3), pages 371-383, April. [Downloadable!] (restricted)
  8. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February. [Downloadable!] (restricted)
    Other versions:
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