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Rational altruism? On preference estimation and dictator game experiments

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  • Grech, Philip D.
  • Nax, Heinrich H.

Abstract

Experimental implementations of dictator games are found to differ in terms of their underlying strategic incentives. We explore this discovery in two separate directions. Theoretically, assuming identical other-regarding preferences, we show that the two most widely used protocols can generate strongly contrasting rational-choice predictions, from which different interpretations of dictator giving arise. Experimentally, a tailor-made experiment reveals significant differences between the two protocols but rejects full rationality as a satisfactory explanatory theory. Our findings indicate that several previously drawn conclusions regarding other-regarding preferences among humans distinguished by social class, gender, generation, nationality, etc. may be more ambiguous than hitherto believed.

Suggested Citation

  • Grech, Philip D. & Nax, Heinrich H., 2020. "Rational altruism? On preference estimation and dictator game experiments," Games and Economic Behavior, Elsevier, vol. 119(C), pages 309-338.
    • Handle: RePEc:eee:gamebe:v:119:y:2020:i:c:p:309-338
    DOI: 10.1016/j.geb.2019.10.004
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    4. Robbins, Blaine G & Karell, Daniel & Siegenthaler, Simon & Kamm, Aaron, 2023. "Pathways to Prosocial Leadership: An Online Experiment on the Effects of External Subsidies and the Relative Price of Giving," SocArXiv 3umys, Center for Open Science.
    5. Philip D. Grech & Heinrich H. Nax & Adrian Soos, 2022. "Incentivization matters: a meta-perspective on dictator games," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 8(1), pages 34-44, December.
    6. Benjamin Ouvrard & Arnaud Reynaud & Stéphane Cezera & Alban Thomas & Dishant Jojit James & Murudaiah Shivamurthy, 2023. "Distributive Justice in the Field: How do Indian Farmers Share Water? ," Working Papers hal-04150233, HAL.
    7. He, Shutong & Blasch, Julia & Robinson, Peter John & van Beukering, Pieter, 2024. "Social comparison feedback in decision-making context: Environmental externality levels and psychological traits matter," Ecological Economics, Elsevier, vol. 216(C).
    8. Luciano Andreozzi & Marco Faillo & Ali Seyhun Saral, 2021. "Reciprocity in Dictator Games: An Experimental Study," CEEL Working Papers 2101, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    9. Xiaoxuan Sun & Guangcheng Ma, 2024. "Research on Carbon Cap Regulation, Retailer Altruistic Preferences, and Green Decision-Making of Manufacturing Enterprises," Sustainability, MDPI, vol. 16(17), pages 1-23, September.

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    More about this item

    Keywords

    Altruism; Charitable giving; Dictator games; CES utility functions; Distributional preferences; Social preferences; Experimental economics; Foundations;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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