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Altruism and the pressure to share: Lab evidence from Tanzania

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  • Salvatore Di Falco
  • Razack Lokina
  • Peter Martinsson
  • Paolo Pin

Abstract

We propose a novel laboratory experiment to document the pressure to share income within social networks in Africa. We find that the redistributive pressure exerted via the possibility of receiving a claim increases altruism, while the possibility of hiding from such claim reduces it. Our results indicate that sharing norms are crucial drivers of giving to other members of the network. We also find that pressure to share has a detrimental effect on the undertaking of profitable but risky investments.

Suggested Citation

  • Salvatore Di Falco & Razack Lokina & Peter Martinsson & Paolo Pin, 2019. "Altruism and the pressure to share: Lab evidence from Tanzania," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-19, May.
    • Handle: RePEc:plo:pone00:0212747
    DOI: 10.1371/journal.pone.0212747
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    References listed on IDEAS

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    1. Angelucci, Manuela & De Giorgi, Giacomo & Rangel, Marcos A. & Rasul, Imran, 2010. "Family networks and school enrolment: Evidence from a randomized social experiment," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 197-221, April.
    2. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    3. Manuela Angelucci & Giacomo De Giorgi, 2009. "Indirect Effects of an Aid Program: How Do Cash Transfers Affect Ineligibles' Consumption?," American Economic Review, American Economic Association, vol. 99(1), pages 486-508, March.
    4. Abigail Barr & Marleen Dekker & Marcel Fafchamps, 2012. "Who Shares Risk with Whom under Different Enforcement Mechanisms?," Economic Development and Cultural Change, University of Chicago Press, vol. 60(4), pages 677-706.
    5. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    6. Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
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    Cited by:

    1. Walther, Olivier J. & Tenikue, Michel & Trémolières, Marie, 2019. "Economic performance, gender and social networks in West African food systems," World Development, Elsevier, vol. 124(C), pages 1-1.

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