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When Ignorance is Bliss - Information Asymmetries Enhance Prosocial Behavior in Dictator Games

Author

Listed:
  • Evguenia Winschel
  • Philipp Zahn

Abstract

In most laboratory experiments concerning prosocial behavior subjects are fully informed how their decision influences the payoff of other players. Outside the laboratory, however, individuals typically have to decide without such detailed knowledge. To assess the effect of information asymmetries on prosocial behavior, we conduct a laboratory experiment with a simple non-strategic interaction. A dictator has only limited knowledge about the benefits his prosocial action generates for a recipient. We observe subjects with heterogenous social preferences. While under symmetric information only individuals with the same type of preferences transfer, under asymmetric information different types transfer at the same time. As a consequence and the main finding of our experiment, uninformed dictators behave more prosocially than informed dictators.

Suggested Citation

  • Evguenia Winschel & Philipp Zahn, 2014. "When Ignorance is Bliss - Information Asymmetries Enhance Prosocial Behavior in Dictator Games," CESifo Working Paper Series 4750, CESifo.
    • Handle: RePEc:ces:ceswps:_4750
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp4750.pdf
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    Citations

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    Cited by:

    1. Sutan, Angela & Grolleau, Gilles & Mateu, Guillermo & Vranceanu, Radu, 2018. "“Facta non verba”: An experiment on pledging and giving," Journal of Economic Psychology, Elsevier, vol. 65(C), pages 1-15.
    2. Kandul, Serhiy, 2016. "Ex-post blindness as excuse? The effect of information disclosure on giving," Journal of Economic Psychology, Elsevier, vol. 52(C), pages 91-101.

    More about this item

    Keywords

    asymmetric information; prosocial behavior; efficiency concern; inequality aversion; dictator game;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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