IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v74y2010i1-2p82-103.html
   My bibliography  Save this article

Does competition affect giving?

Author

Listed:
  • Duffy, John
  • Kornienko, Tatiana

Abstract

Charities often devise fund-raising strategies that exploit natural human competitiveness in combination with the desire for public recognition. We explore whether institutions promoting competition can affect altruistic giving - even when possibilities for public acclaim are minimal. In a controlled laboratory experiment based on a sequential "dictator game" , we find that subjects tend to give more when placed in a generosity tournament, and tend to give less when placed in an earnings tournament - even if there is no award whatsoever for winning the tournament. Further we find that subjects' experimental behavior correlates with their responses to a post-experiment questionnaire, particularly questions addressing altruistic and rivalrous behavior. Based on this evidence, we argue that behavior in our experiment is driven, in part, by innate competitive motives.

Suggested Citation

  • Duffy, John & Kornienko, Tatiana, 2010. "Does competition affect giving?," Journal of Economic Behavior & Organization, Elsevier, vol. 74(1-2), pages 82-103, May.
  • Handle: RePEc:eee:jeborg:v:74:y:2010:i:1-2:p:82-103
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167-2681(10)00021-1
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hoffman Elizabeth & McCabe Kevin & Shachat Keith & Smith Vernon, 1994. "Preferences, Property Rights, and Anonymity in Bargaining Games," Games and Economic Behavior, Elsevier, vol. 7(3), pages 346-380, November.
    2. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, Oxford University Press, vol. 117(3), pages 817-869.
    3. Henrik Orzen, 2005. "Fundraising through Competition: Evidence from the Lab," Discussion Papers 2005-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    4. McKelvey, Richard D & Palfrey, Thomas R, 1992. "An Experimental Study of the Centipede Game," Econometrica, Econometric Society, vol. 60(4), pages 803-836, July.
    5. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
    6. James Andreoni, 1995. "Warm-Glow versus Cold-Prickle: The Effects of Positive and Negative Framing on Cooperation in Experiments," The Quarterly Journal of Economics, Oxford University Press, vol. 110(1), pages 1-21.
    7. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, Oxford University Press, vol. 114(3), pages 817-868.
    8. Nick Feltovich & John Duffy, 1999. "Does observation of others affect learning in strategic environments? An experimental study," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(1), pages 131-152.
    9. John A. List, 2007. "On the Interpretation of Giving in Dictator Games," Journal of Political Economy, University of Chicago Press, vol. 115, pages 482-493.
    10. Andreoni, James, 1995. "Cooperation in Public-Goods Experiments: Kindness or Confusion?," American Economic Review, American Economic Association, vol. 85(4), pages 891-904, September.
    11. Daniel Houser & Michael Keane & Kevin McCabe, 2004. "Behavior in a Dynamic Decision Problem: An Analysis of Experimental Evidence Using a Bayesian Type Classification Algorithm," Econometrica, Econometric Society, vol. 72(3), pages 781-822, May.
    12. Nagore Iriberri & Pedro Rey‐Biel, 2013. "Elicited beliefs and social information in modified dictator games: What do dictators believe other dictators do?," Quantitative Economics, Econometric Society, vol. 4(3), pages 515-547, November.
    13. Frank, Robert H, 1985. "The Demand for Unobservable and Other Nonpositional Goods," American Economic Review, American Economic Association, vol. 75(1), pages 101-116, March.
    14. Rigdon, Mary & Ishii, Keiko & Watabe, Motoki & Kitayama, Shinobu, 2009. "Minimal social cues in the dictator game," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 358-367, June.
    15. Bruno S. Frey & Stephan Meier, 2004. "Social Comparisons and Pro-social Behavior: Testing "Conditional Cooperation" in a Field Experiment," American Economic Review, American Economic Association, vol. 94(5), pages 1717-1722, December.
    16. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    17. Harbaugh, William T, 1998. "The Prestige Motive for Making Charitable Transfers," American Economic Review, American Economic Association, vol. 88(2), pages 277-282, May.
    18. Larry Samuelson, 2004. "Information-Based Relative Consumption Effects," Econometrica, Econometric Society, vol. 72(1), pages 93-118, January.
    19. Offerman, Theo & Schotter, Andrew, 2009. "Imitation and luck: An experimental study on social sampling," Games and Economic Behavior, Elsevier, vol. 65(2), pages 461-502, March.
    20. Bolton, Gary E, 1991. "A Comparative Model of Bargaining: Theory and Evidence," American Economic Review, American Economic Association, vol. 81(5), pages 1096-1136, December.
    21. Ed Hopkins & Tatiana Kornienko, 2004. "Running to Keep in the Same Place: Consumer Choice as a Game of Status," American Economic Review, American Economic Association, vol. 94(4), pages 1085-1107, September.
    22. Rege, Mari & Telle, Kjetil, 2004. "The impact of social approval and framing on cooperation in public good situations," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1625-1644, July.
    23. Cagri S. Kumru & Lise Vesterlund, 2010. "The Effect of Status on Charitable Giving," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(4), pages 709-735, August.
    24. Andreoni, James & Petrie, Ragan, 2004. "Public goods experiments without confidentiality: a glimpse into fund-raising," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1605-1623, July.
    25. Jeffrey Carpenter & Jessica Holmes & PeterHans Matthews, 2008. "Charity auctions: a field experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 92-113, January.
    26. Rick, Scott & Weber, Roberto A., 2010. "Meaningful learning and transfer of learning in games played repeatedly without feedback," Games and Economic Behavior, Elsevier, vol. 68(2), pages 716-730, March.
    27. Timothy N. Cason & Vai-Lam Mui, 1998. "Social Influence in the Sequential Dictator Game," Monash Economics Working Papers archive-37, Monash University, Department of Economics.
    28. Krupka, Erin & Weber, Roberto A., 2009. "The focusing and informational effects of norms on pro-social behavior," Journal of Economic Psychology, Elsevier, vol. 30(3), pages 307-320, June.
    29. Glazer, Amihai & Konrad, Kai A, 1996. "A Signaling Explanation for Charity," American Economic Review, American Economic Association, vol. 86(4), pages 1019-1028, September.
    30. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March.
    31. Roland Bénabou & Jean Tirole, 2003. "Intrinsic and Extrinsic Motivation," Review of Economic Studies, Oxford University Press, vol. 70(3), pages 489-520.
    32. Weiss, Yoram & Fershtman, Chaim, 1998. "Social status and economic performance:: A survey," European Economic Review, Elsevier, vol. 42(3-5), pages 801-820, May.
    33. Nicholas Bardsley, 2008. "Dictator game giving: altruism or artefact?," Experimental Economics, Springer;Economic Science Association, vol. 11(2), pages 122-133, June.
    34. Arthur J.H.C. Schram & Sander Onderstal, 2009. "Bidding To Give: An Experimental Comparison Of Auctions For Charity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 431-457, May.
    35. Axel Ockenfels & Gary E. Bolton, 2000. "ERC: A Theory of Equity, Reciprocity, and Competition," American Economic Review, American Economic Association, vol. 90(1), pages 166-193, March.
    36. Sheryl Ball & Catherine Eckel & Philip J. Grossman & William Zame, 2001. "Status in Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 116(1), pages 161-188.
    37. Dufwenberg, Martin & Muren, Astri, 2006. "Generosity, anonymity, gender," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 42-49, September.
    38. Forsythe Robert & Horowitz Joel L. & Savin N. E. & Sefton Martin, 1994. "Fairness in Simple Bargaining Experiments," Games and Economic Behavior, Elsevier, vol. 6(3), pages 347-369, May.
    39. Daniel Zizzo, 2010. "Experimenter demand effects in economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 13(1), pages 75-98, March.
    40. Nicholas Bardsley & Peter Moffatt, 2007. "The Experimetrics of Public Goods: Inferring Motivations from Contributions," Theory and Decision, Springer, vol. 62(2), pages 161-193, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brown, Jason L. & Fisher, Joseph G. & Sooy, Matthew & Sprinkle, Geoffrey B., 2014. "The effect of rankings on honesty in budget reporting," Accounting, Organizations and Society, Elsevier, vol. 39(4), pages 237-246.
    2. Anya Savikhin Samek & Roman Sheremeta, 2014. "Recognizing contributors: an experiment on public goods," Experimental Economics, Springer;Economic Science Association, vol. 17(4), pages 673-690, December.
    3. repec:kap:expeco:v:20:y:2017:i:2:d:10.1007_s10683-016-9485-0 is not listed on IDEAS
    4. Riyanto, Yohanes E. & Zhang, Jianlin, 2013. "The impact of social comparison of ability on pro-social behaviour," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 37-46.
    5. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    6. Nisvan Erkal & Lata Gangadharan & Nikos Nikiforakis, 2011. "Relative Earnings and Giving in a Real-Effort Experiment," American Economic Review, American Economic Association, vol. 101(7), pages 3330-3348, December.
    7. Offerman, Theo & Schram, Arthur & Van Leeuwen, Boris, 2014. "Competition for status creates superstars: An experiment on public good provision and network formation," IAST Working Papers 14-16, Institute for Advanced Study in Toulouse (IAST).
    8. Yan Chen & F. Maxwell Harper & Joseph Konstan & Sherry Xin Li, 2010. "Social Comparisons and Contributions to Online Communities: A Field Experiment on MovieLens," American Economic Review, American Economic Association, vol. 100(4), pages 1358-1398, September.
    9. Xiaofei (Sophia) Pan & Daniel Houser, 2011. "Competition for Trophies Triggers Male Generosity," Working Papers 1022, George Mason University, Interdisciplinary Center for Economic Science.
    10. repec:eee:pubeco:v:155:y:2017:i:c:p:11-20 is not listed on IDEAS
    11. Bracha, Anat & Vesterlund, Lise, 2013. "How low can you go? Charity reporting when donations signal income and generosity," Working Papers 13-11, Federal Reserve Bank of Boston.
    12. Xiaofei Pan & Daniel Houser, 2011. "Social Approval, Competition, and Cooperation," Levine's Working Paper Archive 786969000000000299, David K. Levine.
    13. repec:bla:econom:v:84:y:2017:i:336:p:647-666 is not listed on IDEAS
    14. Czap, Natalia V. & Czap, Hans J. & Lynne, Gary D. & Burbach, Mark E., 2015. "Walk in my shoes: Nudging for empathy conservation," Ecological Economics, Elsevier, vol. 118(C), pages 147-158.
    15. Martin Daniel Siyaranamual, 2015. "Are Results of Social- and Self-Image Concerns in Voluntary Contributions Game Similar?," Working Papers in Economics and Development Studies (WoPEDS) 201501, Department of Economics, Padjadjaran University, revised Feb 2015.
    16. Anya Savikhin & Roman Sheremeta, 2010. "Visibility of Contributions and Cost of Information: An Experiment on Public Goods," Working Papers 10-22, Chapman University, Economic Science Institute.
    17. Oded Stark, 2017. "Migration when Social Preferences are Ordinal: Steady-state Population Distribution and Social Welfare," Economica, London School of Economics and Political Science, vol. 84(336), pages 647-666, October.
    18. repec:eee:gamebe:v:104:y:2017:i:c:p:24-42 is not listed on IDEAS
    19. Robert Böhm & Tobias Regner, 2013. "Charitable giving among females and males: an empirical test of the competitive altruism hypothesis," Journal of Bioeconomics, Springer, vol. 15(3), pages 251-267, October.
    20. repec:pit:wpaper:275 is not listed on IDEAS
    21. Tran, Anh & Zeckhauser, Richard, 2012. "Rank as an inherent incentive: Evidence from a field experiment," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 645-650.
    22. Ioannou, Christos A. & Qi, Shi & Rustichini, Aldo, 2015. "Group payoffs as public signals," Journal of Economic Psychology, Elsevier, vol. 48(C), pages 89-105.
    23. Yuki Sakura Kristi & Mohamad Fahmi & Martin Daniel Siyaranamual, 2016. "Pro-social Behavior of Bandung Schoolchildren:The Effects of Competition and Socioeconomic Status," Working Papers in Economics and Development Studies (WoPEDS) 201604, Department of Economics, Padjadjaran University, revised Dec 2016.
    24. Anya Samek & Roman Sheremeta, 2013. "Recognizing Contributors and Cost of Information: An Experiment on Public Goods," Artefactual Field Experiments 00430, The Field Experiments Website.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:74:y:2010:i:1-2:p:82-103. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/jebo .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.