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Surprising Gifts: Theory and Laboratory Evidence

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  • Werner, Peter
  • Khalmetski, Kiryl
  • Ockenfels, Axel

Abstract

People do not only feel guilt from not living up to others expectations (Battigalli and Dufwenberg (2007)), but may also like to exceed them. We propose a model that generalizes the guilt aversion model to capture the possibility of positive surprises when making gifts. A model extension allows decision makers to care about others' attribution of intentions behind surprises. We test the model in two dictator game experiments. Experiment 1 shows a strong causal effect of recipients expectations on dictators transfers. Moreover, in line with our model, the correlation between transfers and expectations can be both, positive and negative, obscuring the effect in the aggregate. Experiment 2 shows that dictators care about what recipients know about the intentions behind surprises.

Suggested Citation

  • Werner, Peter & Khalmetski, Kiryl & Ockenfels, Axel, 2015. "Surprising Gifts: Theory and Laboratory Evidence," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113006, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:113006
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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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