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Comparing Real and Hypothetical Incentives in Giving and Money Burning Experiments

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  • David Masclet
  • Thérèse Rebière

Abstract

This paper examines experimentally how social and anti-social decisions respond to hypothetical or real incentives. Our experiment consists of three games: i) a Modified Dictator Game, ii) a Money Giving Game, and iii) a Money Burning Game. Although we find different size effects (quantitative differences) across treatments, our data indicate very similar directional changes (qualitative similarities) relative to initial endowment distribution and the price of the decision. These findings suggest that if we are mainly interested in qualitative (directional) findings, then using hypothetical incentives may be relevant and considered as a diluted version of the real ones.

Suggested Citation

  • David Masclet & Thérèse Rebière, 2023. "Comparing Real and Hypothetical Incentives in Giving and Money Burning Experiments," Annals of Economics and Statistics, GENES, issue 152, pages 65-102.
    • Handle: RePEc:adr:anecst:y:2023:i:152:p:65-102
    DOI: 10.2307/48754785
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    More about this item

    Keywords

    Real versus Hypothetical Incentives; Experiments; Social and anti-social Preferences;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D00 - Microeconomics - - General - - - General

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