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Doing good with other people’s money: an experiment on people's (un)willingness to grant others the freedom to choose

Author

Listed:
  • Fredrik Carlsson

    () (Department of Economics, University of Gothenburg, Sweden)

  • Mitesh Kataria

    () (Department of Economics, University of Gothenburg, Sweden)

  • Elina Lampi

    () (Department of Economics, University of Gothenburg, Sweden)

  • Maria Vittoria Levati

    () (Department of Economics (University of Verona))

Abstract

We augment a standard allocation experiment to investigate how preferences for an environmental project relate to the willingness to limit others' choices. We ask the allocator to choose his own donation level, a donation level for him and his group, and the minimum donation level for the group members (excluding the allocator). We find that donations dictated to the whole group are, on average, lower than individual donations and that this decrease is consistent with the expectations of what others would like to donate. Moreover, most allocators force the others to donate a positive, though low, amount. Thus, unlimited freedom of choice is rejected by the majority of the subjects.

Suggested Citation

  • Fredrik Carlsson & Mitesh Kataria & Elina Lampi & Maria Vittoria Levati, 2015. "Doing good with other people’s money: an experiment on people's (un)willingness to grant others the freedom to choose," Working Papers 08/2015, University of Verona, Department of Economics.
  • Handle: RePEc:ver:wpaper:08/2015
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    File URL: http://dse.univr.it/home/workingpapers/wp2015n8.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Allocation decisions; Charitable giving; Social preferences; Freedom of choice;

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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