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Crowding out and imitation behavior in the solidarity game

Author

Listed:
  • Vogel, Claudia
  • Heimel, Jana
  • Bolle, Friedel

Abstract

In the Solidarity Game (Selten and Ockenfels, 1998), two "rich" persons can support a "poor" one. A strong positive correlation between one rich person's solidarity contribution and his expected contribution of the other is observed. This paper investigates the causality behind this correlation. Depending on the measure, we find that up to thirds of our subjects behave strategically. More than one third of the subjects show a crowding-out effect, i.e. they want to give less if they expect others to give more. This is no contradiction to the positive correlation if these subjects assume the others to be like themselves. In addition to strategic motives we find, for a quarter of the subjects, the wish to imitate their co-benefactors, usually however only for low contributions.

Suggested Citation

  • Vogel, Claudia & Heimel, Jana & Bolle, Friedel, 2004. "Crowding out and imitation behavior in the solidarity game," Discussion Papers 223, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
  • Handle: RePEc:zbw:euvwdp:223
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    File URL: https://www.econstor.eu/bitstream/10419/23796/1/223_Bolle_Heimel_Vogel.pdf
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    Cited by:

    1. Okhrin, Irena & Richter, Knut, 2010. "The linear dynamic lot size problem with minimum order quantities," Discussion Papers 283, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    2. Okhrin, Irena & Richter, Knut, 2011. "An O(T3) algorithm for the capacitated lot sizing problem with minimum order quantities," European Journal of Operational Research, Elsevier, vol. 211(3), pages 507-514, June.

    More about this item

    Keywords

    Solidarity; Crowding out; Imitation;

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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