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Making the World a better Place: Experimental evidence from the generosity Game

Author

Listed:
  • Werner Güth

    (Max Planck Institute of Economics)

  • M. Vittoria Levati

    (Max Planck Institute of Economics)

  • Matteo Ploner

    (Max Planck Institute of Economics)

Abstract

We study ultimatum and dictator experiments where the first mover chooses the amount of money to be distributed between the players within a given interval, knowing that her own share is fixed. Thus, the first mover is faced with scarcity, but not with the typical trade-off between her own and the other's payoff. Removing the trade-off inspires significant generosity, which is not affected by the second mover's veto power. On the whole our results con?rm heterogeneity in behavior, but point to efficiency concerns as the predominant motive.

Suggested Citation

  • Werner Güth & M. Vittoria Levati & Matteo Ploner, 2009. "Making the World a better Place: Experimental evidence from the generosity Game," Jena Economics Research Papers 2009-071, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2009-071
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    File URL: https://oweb.b67.uni-jena.de/Papers/jerp2009/wp_2009_071.pdf
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    Citations

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    Cited by:

    1. Haoran He & Marie Claire Villeval, 2014. "Are teams less inequality averse than individuals?," Post-Print halshs-01077253, HAL.
    2. Werner Güth & Charlotte Klempt & Kerstin Pull, 2019. "Cognitively differentiating between sharing games: inferences from choice and belief data of proposer participants," Economics Bulletin, AccessEcon, vol. 39(1), pages 605-614.
    3. Güth, Werner, 2010. "The Generosity Game and calibration of inequity aversion," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 155-157, April.
    4. Agnes Bäker & Werner Güth & Kerstin Pull & M. Stadler, 2010. "Does Entitlement Crowd Out Efficiency or Equality Seeking? - Selling the Roles in Generosity Game Experiments -," Jena Economics Research Papers 2010-091, Friedrich-Schiller-University Jena.
    5. Güth, Werner & Kocher, Martin G., 2014. "More than thirty years of ultimatum bargaining experiments: Motives, variations, and a survey of the recent literature," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 396-409.
    6. Pelligra, Vittorio & Stanca, Luca, 2013. "To give or not to give? Equity, efficiency and altruistic behavior in an artefactual field experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 1-9.
    7. He, Haoran & Villeval, Marie Claire, 2017. "Are group members less inequality averse than individual decision makers?," Journal of Economic Behavior & Organization, Elsevier, vol. 138(C), pages 111-124.
    8. Ben D'Exelle & Els Lecoutere & Bjorn Van Campenhout, 2010. "Social status and bargaining when resources are scarce: Evidence from a field lab experiment," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-09, School of Economics, University of East Anglia, Norwich, UK..
    9. He, Haoran & Wu, Keyu, 2016. "Choice set, relative income, and inequity aversion: An experimental investigation," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 177-193.
    10. Werner Güth & Kerstin Pull & Manfred Stadler & Agnes Stribeck, 2010. "Equity versus Efficiency? Evidence from Three-Person Generosity Experiments," Games, MDPI, vol. 1(2), pages 1-14, April.
    11. Haoran He & Marie Claire Villeval, 2014. "Are team members less inequality averse than individual decision makers?," Working Papers halshs-00996545, HAL.

    More about this item

    Keywords

    Ultimatum; Dictator; Social Preferences;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - 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

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