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Incentive-Induced Social Tie and Subsequent Altruism and Cooperation

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  • Gioia Francesca

    (9304 University of Milan , Milano, Italy)

Abstract

In this paper, we studied the spillover effects of cooperative and competitive incentive schemes on subsequent decisions involving altruism and cooperation. We collected data with a laboratory experiment where subjects were asked to perform Mini Dictator games and a Public Good game after playing an incentivized real effort task. We found that cooperative incentives foster higher subsequent altruism and cooperation as compared with competitive or individual incentives. By contrast, competitive incentives induced more envy towards competitor peers and more spiteful behaviour when giving implies a larger payoff for the recipient. The effect of incentives on altruism and cooperation was moderated by relative rank in the incentivized effort task and by individual level of impulsivity.

Suggested Citation

  • Gioia Francesca, 2024. "Incentive-Induced Social Tie and Subsequent Altruism and Cooperation," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(3), pages 751-797.
    • Handle: RePEc:bpj:bejeap:v:24:y:2024:i:3:p:751-797:n:1003
    DOI: 10.1515/bejeap-2023-0138
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    More about this item

    Keywords

    incentive schemes; altruism; cooperation; competition;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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