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When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving

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  • Rey-Biel, Pedro
  • Sheremeta, Roman
  • Uler, Neslihan

Abstract

We study how giving depends on income and luck, and how culture and information about the determinants of others’ income affect this relationship. Our data come from an experiment conducted in two countries, the US and Spain – each of which have different beliefs about how income inequality arises. We find that when individuals are informed about the determinants of income, there are no cross-cultural differences in giving. When uninformed, however, Americans give less than the Spanish. This difference persists even after controlling for beliefs, personal characteristics, and values.

Suggested Citation

  • Rey-Biel, Pedro & Sheremeta, Roman & Uler, Neslihan, 2018. "When Income Depends on Performance and Luck: The Effects of Culture and Information on Giving," MPRA Paper 83940, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:83940
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    Cited by:

    1. repec:kap:expeco:v:20:y:2017:i:4:d:10.1007_s10683-017-9516-5 is not listed on IDEAS
    2. Jared Rubin & Roman Sheremeta, 2016. "Principal–Agent Settings with Random Shocks," Management Science, INFORMS, vol. 62(4), pages 985-999, April.
    3. Roman M. Sheremeta & Neslihan Uler, 2016. "The Impact of Taxes and Wasteful Government Spending on Giving," Working Papers 16-07, Chapman University, Economic Science Institute.
    4. Yamamura, Eiji & Tsutsui, Yoshiro & Ohtake, Fumio, 2018. "Altruistic and selfish motivations of charitable giving: The case of the hometown tax donation system (Furusato nozei) in Japan," MPRA Paper 86181, University Library of Munich, Germany.
    5. Grimalda, Gianluca & Farina, Francesco & Schmidt, Ulrich, 2018. "Preferences for redistribution in the US, Italy, Norway: An experiment study," Kiel Working Papers 2099, Kiel Institute for the World Economy (IfW).
    6. Konow, James & Saijo, Tatsuyoshi & Akai, Kenju, 2016. "Equity versus Equality," MPRA Paper 75376, University Library of Munich, Germany.
    7. Fehr, Dietmar, 2015. "Is increasing inequality harmful? Experimental evidence," Discussion Papers, Research Unit: Market Behavior SP II 2015-209, WZB Berlin Social Science Center.
    8. repec:eee:gamebe:v:107:y:2018:i:c:p:123-134 is not listed on IDEAS

    More about this item

    Keywords

    individual giving; information; culture; beliefs; laboratory experiment;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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