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Naive Responses to Kind Delegation

  • Gerald Eisenkopf

    ()

    (Department of Economics, University of Konstanz, Germany)

  • Urs Fischbacher

    ()

    (Department of Economics, University of Konstanz, Germany)

People do not like to delegate the distribution of favors. To explain this reluctance we disentangle reward motives in an experiment, in which an investor can directly transfer money to a trustee or delegate this decision to another investor. Varying the transfer values of investor and delegate, we find that the trustee’s rewards follow a rather simple pattern. In all situations, both investors are rewarded, but the person who ultimately decides gets a higher reward. Unlike studies on the punishment of delegated unkind decisions our results do not reveal sophisticated reward behavior that takes the responsibility of people into account.

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Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2012-19.

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Length: 25 pages
Date of creation: 02 Aug 2012
Date of revision:
Handle: RePEc:knz:dpteco:1219
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  5. Charness, Gary & Levine, David I., 2003. "The Road to Hell: An Experimental Study of Intentions," University of California at Santa Barbara, Economics Working Paper Series qt4xs9d0nz, Department of Economics, UC Santa Barbara.
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  16. David K. Levine, 1998. "Modeling Altruism and Spitefulness in Experiment," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 1(3), pages 593-622, July.
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  21. Lucas C. Coffman, 2011. "Intermediation Reduces Punishment (and Reward)," American Economic Journal: Microeconomics, American Economic Association, vol. 3(4), pages 77-106, November.
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