CeDEx workshop - Subhasish Modak Chowdhury (University of East Anglia)

Income Effect and Altruism

Abstract:

We investigate the consequences of a pure income effect on the altruistic behavior of donors. Inequity aversion theories predict either no effect or a decrease in giving, whereas warm-glow theory predicts an increase in giving with an increase in the common income of donor and receiver. Theoretical predictions being contradictory, we run a dictator game in which we vary the common show-up fee of both the dictator and the recipient, but keep an extra amount to be shared the same. The prediction of the warm-glow theory is supported.

Altruism, Anticipation and Gender

Abstract:

We experimentally study altruistic behavior and the anticipation about the same with a specific focus on gender. In a simple dictator game we vary the common Show-up fee of both the dictator and the recipient in each between-subject treatment, but keep the amount to be shared the same. Overall, females give more than their male counterpart but it is driven specifically for high show-up fees. Male recipients, on average, anticipate not only more than what the females anticipate, but also the amount the males give as dictators.