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Impure altruism or inequality aversion?: An experimental investigation based on income effects

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  • Chowdhury, Subhasish M.
  • Jeon, Joo Young

Abstract

We investigate the consequences of a pure income effect on the altruistic behavior of donors. Inequality aversion theories predict either no effect or a decrease in giving, whereas impure altruism theory predicts an increase in giving with an increase in the common income of donor and receiver. Theoretical predictions being contradictory, we run a dictator game in which we vary the common show-up fee of both the dictator and the recipient, while keeping an extra amount to be shared the same. The results are in line with the prediction of the impure altruism theory.

Suggested Citation

  • Chowdhury, Subhasish M. & Jeon, Joo Young, 2014. "Impure altruism or inequality aversion?: An experimental investigation based on income effects," Journal of Public Economics, Elsevier, vol. 118(C), pages 143-150.
  • Handle: RePEc:eee:pubeco:v:118:y:2014:i:c:p:143-150
    DOI: 10.1016/j.jpubeco.2014.07.003
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    Cited by:

    1. Vasilaky, Kathryn N. & Islam, Asif M., 2018. "Competition or cooperation? Using team and tournament incentives for learning among female farmers in rural Uganda," World Development, Elsevier, vol. 103(C), pages 216-225.
    2. Calabuig, Vicente & Fatas, Enrique & Olcina, Gonzalo & Rodriguez-Lara, Ismael, 2016. "Carry a big stick, or no stick at all," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 153-171.
    3. Mickael Beaud & Mathieu Lefebvre & Julie Rosaz, 2018. "Other-Regarding Preferences and Giving Decision in Risky Environments: Experimental Evidence," Working Papers 1815, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    4. Toke R. Fosgaard & Adriaan (A.R.) Soetevent, 2018. "Promises Undone: How Committed Pledges Impact Donations to Charity," Tinbergen Institute Discussion Papers 18-044/VII, Tinbergen Institute.
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    10. Gutierrez, Federico H., 2018. "A Sharing Model of the Household: Explaining the Deaton-Paxson Paradox and Computing Household Indifference Scales," GLO Discussion Paper Series 166, Global Labor Organization (GLO).
    11. James Andreoni & Marta Serra-Garcia, 2016. "Time-Inconsistent Charitable Giving," NBER Working Papers 22824, National Bureau of Economic Research, Inc.
    12. Rodriguez-lara, Ismael, 2015. "Equal distribution or equal payoffs? Reciprocity and inequality aversion in the investment game," MPRA Paper 63313, University Library of Munich, Germany.
    13. Mickaël Beaud & Mathieu Lefebvre & Julie Rosaz, 2018. "Other-regarding preferences and giving decision in risky environments: experimental evidence," CEE-M Working Papers hal-01954928, CEE-M, Universtiy of Montpellier, CNRS, INRA, Montpellier SupAgro.

    More about this item

    Keywords

    Altruism; Dictator-game; Income effect; Impure altruism; Inequality aversion;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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