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A Complicated Formation of Warm Glow Giving

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  • Yasuhiro Nakamoto

Abstract

We examine what lies behind the act of warm glow giving in a laboratory experiment. Making use of the experimental design in Crumpler and Grossman (2008, Journal of Public Economics), we separate the warm glow giving from the altruistic motivation. We find that the contributions generated by the warm glow giving are highly sensitive to the reference contribution, indicating to the complementary relationship between own and the others' contributions. Finally, we make regression to investigate the relationship between demographic attributes and the contribution generated by the warm glow.

Suggested Citation

  • Yasuhiro Nakamoto, 2017. "A Complicated Formation of Warm Glow Giving," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 3(3), pages 333-344, July.
    • Handle: RePEc:ate:journl:ajbev3i3-6
    DOI: 10.30958/ajbe.3.3.6
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    References listed on IDEAS

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    1. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    2. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
    3. Crumpler, Heidi & Grossman, Philip J., 2008. "An experimental test of warm glow giving," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1011-1021, June.
    4. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr.
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