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If the Worst Comes to the Worst. Dictator Giving When Recipient’s Endowments are Risky

Listed author(s):
  • Christoph Engel

    ()

    (Max Planck Institute for Research on Collective Goods, Bonn)

  • Sebastian Goerg

    ()

    (Max Planck Institute for Research on Collective Goods, Bonn)

Donors may often not be sure whether a recipient really deserves their help. Does this uncertainty deter generosity? In an experiment we find that, to the contrary, under most specifications of uncertainty, dictators give more, compared with the donation the same dictator makes to a recipient they know to have the expected value of the endowment with certainty. They are particularly concerned about the possibility that a recipient leaves the lab with no payoff from the game.

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Paper provided by Max Planck Institute for Research on Collective Goods in its series Working Paper Series of the Max Planck Institute for Research on Collective Goods with number 2015_15.

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Date of creation: Oct 2015
Handle: RePEc:mpg:wpaper:2015_15
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