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Reputation and influence in charitable giving: an experiment

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  • David Reinstein
  • Gerhard Riener

Abstract

Previous experimental and observational work suggests that people act more generously when they are observed and observe others in social settings. But the explanation for this is unclear. An individual may want to send a signal of her generosity in order to improve her own reputation. Alternately (or additionally) she may value the public good or charity itself and, believing that contribution levels are strategic complements, give more in order to influence others to give more. We perform the first series of laboratory experiments that can separately estimate the impact of these two social effects, and test whether realized influence is consistent with the desire to influence, and whether either of these are consistent with anticipated influence. We find that 'leaders' are influential only when their identities are revealed along with their donations, and female leaders are more influential then males. Identified leader's predictions suggest that are aware of their influence. They respond to this by giving more than either the control group or the unidentified leaders. We find mixed evidence for 'reputation-seeking.'
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Suggested Citation

  • David Reinstein & Gerhard Riener, 2012. "Reputation and influence in charitable giving: an experiment," Theory and Decision, Springer, vol. 72(2), pages 221-243, February.
  • Handle: RePEc:kap:theord:v:72:y:2012:i:2:p:221-243
    DOI: 10.1007/s11238-011-9245-8
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    File URL: http://hdl.handle.net/10.1007/s11238-011-9245-8
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    4. Diane Reyniers & Richa Bhalla, 2013. "Reluctant altruism and peer pressure in charitable giving," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 8(1), pages 7-15, January.
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    8. Reyniers, Diane & Bhalla, Richa, 2013. "Reluctant altruism and peer pressure in charitable giving," LSE Research Online Documents on Economics 48779, London School of Economics and Political Science, LSE Library.
    9. Daniel John Zizzo, 2013. "Do dictator games measure altruism?," Chapters, in: Luigino Bruni & Stefano Zamagni (ed.), Handbook on the Economics of Reciprocity and Social Enterprise, chapter 10, pages 108-111, Edward Elgar Publishing.
    10. Markus Pasche, 2013. "What Can be Learned from Behavioural Economics for Environmental Policy?," Jena Economic Research Papers 2013-020, Friedrich-Schiller-University Jena.
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