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Poverty in Dictator Games: Awakening Solidarity

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Abstract

This paper investigates the effect of poverty and good intentions on dictator game giving. Previous experimental studies in which information was supplied to dictators about recipients have shown that dictator giving increases overall in this context. We develop a new design of standard informed dictator games with three main variants: 1) three recipients are used instead of one; 2) dictators are informed that their recipients are poor; 3) dictators give donations in the form of medicines instead of money. We have found that 46% of the experimental subjects (dictators) give the full amount of money (100% of the endowment) in the “poverty” treatment, while in the “medicines” treatment this percentage increases to 72%. Such extremely generous behavior has seldom been observed in the previous literature on dictator games.

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  • Pablo Brañas Garza, 2003. "Poverty in Dictator Games: Awakening Solidarity," Economic Working Papers at Centro de Estudios Andaluces E2003/50, Centro de Estudios Andaluces.
  • Handle: RePEc:cea:doctra:e2003_50
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    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. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
    4. Bruno S. Frey & Iris Bohnet, 1999. "Social Distance and Other-Regarding Behavior in Dictator Games: Comment," American Economic Review, American Economic Association, vol. 89(1), pages 335-339, March.
    5. 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.
    6. Norman Frohlich & Joe Oppenheimer & Anja Kurki, 2004. "Modeling Other-Regarding Preferences and an Experimental Test," Public Choice, Springer, vol. 119(1_2), pages 91-117, April.
    7. Fernado Aguiar & Pablo Brañas-Garza, 2005. "The limits of Consequentialism: An experimental approach," ThE Papers 05/17, Department of Economic Theory and Economic History of the University of Granada..
    8. Gary E. Bolton & Rami Zwick & Elena Katok, 1998. "Dictator game giving: Rules of fairness versus acts of kindness," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(2), pages 269-299.
    9. Charness, Gary & Haruvy, Ernan & Sonsino, Doron, 2007. "Social distance and reciprocity: An Internet experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 88-103, May.
    10. Burnham, Terence C., 2003. "Engineering altruism: a theoretical and experimental investigation of anonymity and gift giving," Journal of Economic Behavior & Organization, Elsevier, vol. 50(1), pages 133-144, January.
    11. Frohlich, Norman & Oppenheimer, Joe & Bernard Moore, J., 2001. "Some doubts about measuring self-interest using dictator experiments: the costs of anonymity," Journal of Economic Behavior & Organization, Elsevier, vol. 46(3), pages 271-290, November.
    12. Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, vol. 86(3), pages 653-660, June.
    13. James Andreoni & John Miller, 2002. "Giving According to GARP: An Experimental Test of the Consistency of Preferences for Altruism," Econometrica, Econometric Society, vol. 70(2), pages 737-753, March.
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    Keywords

    dictator giving; poverty effect; good intentions effect; medicines.;

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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