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Generosity

Author

Listed:
  • Ellingsen, Tore

    (Dept. of Economics, Stockholm School of Economics)

  • Johannesson, Magnus

    (Dept. of Economics, Stockholm School of Economics)

Abstract

We develop a simple model of generous behavior. It is based on the premise that some people are generous, but everyone wants to appear generous. Although non-monetary donations are always inefficient, our model predicts donors to favor non-monetary donations when the inefficiency is relatively small and when the recipient is sufficiently rich. The model helps to explain the prevalence of volunteering, the nature of Christmas gifts, and the taboo against paying cash in return for friendly favors. The model also explains why it is socially more acceptable to ask for favors than for money.

Suggested Citation

  • Ellingsen, Tore & Johannesson, Magnus, 2007. "Generosity," SSE/EFI Working Paper Series in Economics and Finance 664, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0664
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    Citations

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    Cited by:

    1. Dan Ariely & Anat Bracha & Stephan Meier, 2009. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," American Economic Review, American Economic Association, vol. 99(1), pages 544-555, March.

    More about this item

    Keywords

    Altruism; Non-monetary gifts; Volunteering;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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