IDEAS home Printed from https://ideas.repec.org/p/abo/neswpt/w0171.html

Warm-Glow Giving and Freedom to be Selfish

Author

Listed:
  • Özgür Evren

    (New Economic School)

  • Stefania Minardi

    (Department of Economics, New York University)

Abstract

Warm-glow refers to other-serving behavior that is valuable for the actor per se, apart from its social implications. We provide axiomatic foundations for warm-glow by viewing it as a form of preference for larger choice sets, in the sense of the literature on freedom of choice. Specically, an individual who experiences warm-glow prefers the freedom to be sel sh: she values the availability of sel sh options even if she plans to act unsel shly. Our theory also provides foundations for empirically distinguishing between warm-glow and other motivations for prosocial behavior. The implied choice behavior subsumes Riker and Ordeshook (1968) and Andreoni (1990).

Suggested Citation

  • Özgür Evren & Stefania Minardi, 2011. "Warm-Glow Giving and Freedom to be Selfish," Working Papers w0171, New Economic School (NES).
    • Handle: RePEc:abo:neswpt:w0171
    as

    Download full text from publisher

    File URL: https://www.nes.ru/files/Preprints-resh/WP171.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Krasa, Stefan & Polborn, Mattias K., 2009. "Is mandatory voting better than voluntary voting?," Games and Economic Behavior, Elsevier, vol. 66(1), pages 275-291, May.
    2. David Dillenberger & Philipp Sadowski, 2008. "Ashamed to be Selfish," PIER Working Paper Archive 08-037, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    3. Patricia Funk, 2010. "Social Incentives and Voter Turnout: Evidence from the Swiss Mail Ballot System," Journal of the European Economic Association, MIT Press, vol. 8(5), pages 1077-1103, September.
    4. Eddie Dekel & Barton L Lipman & Aldo Rustichini & Todd Sarver, 2007. "Representing Preferences with a Unique Subjective State Space: A Corrigendum -super-1," Econometrica, Econometric Society, vol. 75(2), pages 591-600, March.
    5. Andreoni, James & Bergstrom, Ted, 1996. "Do Government Subsidies Increase the Private Supply of Public Goods?," Public Choice, Springer, vol. 88(3-4), pages 295-308, September.
    6. Riker, William H. & Ordeshook, Peter C., 1968. "A Theory of the Calculus of Voting," American Political Science Review, Cambridge University Press, vol. 62(1), pages 25-42, March.
    7. Noor, Jawwad & Takeoka, Norio, 2015. "Menu-dependent self-control," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 1-20.
    8. Kreps, David M, 1979. "A Representation Theorem for "Preference for Flexibility"," Econometrica, Econometric Society, vol. 47(3), pages 565-577, May.
    9. Diamond, Peter, 2006. "Optimal tax treatment of private contributions for public goods with and without warm glow preferences," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 897-919, May.
    10. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486, August.
    11. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
    12. Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-148, February.
    13. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1, January.
    14. Riker, William H. & Ordeshook, Peter C., 1968. "A Theory of the Calculus of Voting," American Political Science Review, Cambridge University Press, vol. 62(1), pages 25-42, 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. Sintayoh Fissha Geberegziabher & Shahid Islam, 2022. "Voices of Tigray Women on the 2020 Election: The Freedom to Vote," International Journal of Regional Development, Macrothink Institute, vol. 9(2), pages 1-14, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreoni, James & Payne, A. Abigail, 2011. "Is crowding out due entirely to fundraising? Evidence from a panel of charities," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 334-343, June.
    2. Scharf, Kimberley Ann, 2000. "Why are tax expenditures for giving embodied in fiscal constitutions?," Journal of Public Economics, Elsevier, vol. 75(3), pages 365-387, March.
    3. Nyborg, Karine & Rege, Mari, 2003. "Does Public Policy Crowd Out Private Contributions to Public Goods," Public Choice, Springer, vol. 115(3-4), pages 397-418, June.
    4. Vivekananda Mukherjee & Sugata Marjit & Gautam Gupta, 2003. "Private Contribution for Public Projects: Government versus NGOs," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 159(3), pages 553-570, September.
    5. Zhiyong An, 2015. "On the sufficiency of using the elasticity of taxable income to calculate deadweight loss: the implications of charitable giving and warm glow," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(6), pages 1040-1047, December.
    6. Tomáš Sigmund, 2015. "Vztah etického a ekonomického chování [The relationship of ethical and economic behaviour]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(2), pages 223-243.
    7. Leandro Gorno, 2010. "Additive representation for preferences over menus in finite choice settings," Working Papers 1292, Princeton University, Department of Economics, Econometric Research Program..
    8. Vincent C.H. Chua & Chung Ming Wong, 2003. "The Role of United Charities in Fundraising: The Case of Singapore," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 74(3), pages 433-464, September.
    9. Chih, Yao-Yu, 2016. "Social network structure and government provision crowding-out on voluntary contributions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 63(C), pages 83-90.
    10. Scharf, Kimberley, 2014. "Impure prosocial motivation in charity provision: Warm-glow charities and implications for public funding," Journal of Public Economics, Elsevier, vol. 114(C), pages 50-57.
    11. Zhiyong An, 2023. "On the marginal cost of public funds: the implications of charitable giving and warm glow," Fiscal Studies, John Wiley & Sons, vol. 44(3), pages 299-307, September.
    12. Huseyin Yildirim & Alvaro Name Correa, 2011. "A Theory of Charitable Fund-Raising with Costly Solicitations," Levine's Working Paper Archive 786969000000000222, David K. Levine.
    13. James Andreoni & Abigail Payne, 2007. "Crowding out Both Sides of the Philanthropy Market: Evidence from a Panel of Charities," Levine's Bibliography 122247000000001769, UCLA Department of Economics.
    14. Ryo Ishida, 2014. "Determinants of Charitable Giving to Unexpected Natural Disasters: Evidence from Two Major Earthquakes in Japan," Discussion papers ron256, Policy Research Institute, Ministry of Finance Japan.
    15. Scharf, Kimberley, 2010. "Public Funding of Charities and Competitive Charity Selection," CEPR Discussion Papers 7937, Centre for Economic Policy Research.
    16. Nathalie Monnet & Ugo Panizza, 2017. "A Note on the Economics of Philanthropy," IHEID Working Papers 19-2017, Economics Section, The Graduate Institute of International Studies.
    17. Arthur C. Brooks, 2001. "Private Philanthropy and the Economics of Public Radio," Center for Policy Research Working Papers 41, Center for Policy Research, Maxwell School, Syracuse University.
    18. Cantoni, Enrico & Gazzè, Ludovica & Schafer, Jerome, 2021. "Turnout in concurrent elections: Evidence from two quasi-experiments in Italy," European Journal of Political Economy, Elsevier, vol. 70(C).
    19. André Lapied & Thomas Rongiconi, 2013. "Ambiguity as a Source of Temptation: Modeling Unstable Beliefs," Working Papers halshs-00797631, HAL.
    20. Peter G. Backus & Nicky L. Grant, 2019. "How sensitive is the average taxpayer to changes in the tax-price of giving?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(2), pages 317-356, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

    Statistics

    Access and download statistics

    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:abo:neswpt:w0171. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vladimir Ivanyukhin The email address of this maintainer does not seem to be valid anymore. Please ask Vladimir Ivanyukhin to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/nerasru.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.