Investment behavior in a constrained dictator game
AbstractWe analyze a constrained dictator game in which the dictator splits a pie which will be subsequently created through simultaneous investments by herself and the recipient. We consider two treatments by varying the maximum attainable size of the pie leading to either high or low investment incentives. We find that constrained dictators and recipients invest less than a model with self-interested players would predict. While the splitting decisions of constrained dictators correspond to the theoretical predictions when investment incentives are high, they are more selfish when investment incentives are low. Overall, team productivity is negatively affected by lower investment incentives. --
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Bibliographic InfoPaper provided by Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE) in its series DICE Discussion Papers with number 77.
Date of creation: 2012
Date of revision:
Bargaining Game; Dictator Game; Investment Incentives; Team Production;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-10 (All new papers)
- NEP-CBE-2012-12-10 (Cognitive & Behavioural Economics)
- NEP-CDM-2012-12-10 (Collective Decision-Making)
- NEP-CTA-2012-12-10 (Contract Theory & Applications)
- NEP-EVO-2012-12-10 (Evolutionary Economics)
- NEP-EXP-2012-12-10 (Experimental Economics)
- NEP-GTH-2012-12-10 (Game Theory)
- NEP-HRM-2012-12-10 (Human Capital & Human Resource Management)
- NEP-MIC-2012-12-10 (Microeconomics)
- NEP-NET-2012-12-10 (Network Economics)
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