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Indirect Reciprocity and Charitable Giving— Evidence from a Field Experiment

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  • Menusch Khadjavi

    (Department of Economics, University of Kiel, 24118 Kiel, Germany; Institute for the World Economy, 24105 Kiel, Germany)

Abstract

This paper investigates two channels of prosociality: indirect reciprocity and charitable giving. We conducted a natural field experiment in a hair salon in Hamburg, Germany, over the course of four months. In the baseline, we collected data on customers’ tips—a scenario absent indirect reciprocity and donations. In two treatments we had the hairdresser collect donations to a charity. In one treatment the hairdresser pointed out the opportunity to donate. Our data indicate that the voluntary activity of collecting donations in the salon led to greater tips for the hairdresser and significant donations. In the second treatment, the hairdresser unconditionally donated to the charity before the customers could. This donation did not increase tips further compared with the collection-only treatment. Our data indicate that indirect reciprocity works in the field. We find evidence that indirect reciprocity and charitable giving work as complements.

Suggested Citation

  • Menusch Khadjavi, 2017. "Indirect Reciprocity and Charitable Giving— Evidence from a Field Experiment," Management Science, INFORMS, vol. 63(11), pages 3708-3717, November.
    • Handle: RePEc:inm:ormnsc:v:63:y:2017:i:11:p:3708-3717
    DOI: 10.1287/mnsc.2016.2519
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    References listed on IDEAS

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    3. Dyussembayeva, Shynar & Viglia, Giampaolo & Nieto-Garcia, Marta & Mattila, Anna S., 2022. "Would you like to add a gratuity? When explicit requests hamper tipping," Journal of Business Research, Elsevier, vol. 139(C), pages 908-917.
    4. Isamu Okada, 2020. "A Review of Theoretical Studies on Indirect Reciprocity," Games, MDPI, vol. 11(3), pages 1-17, July.
    5. Andreas Lange & Claudia Schwirplies, 2021. "Bargaining With Charitable Promises: True Preferences and Strategic Behavior," CESifo Working Paper Series 9129, CESifo.
    6. Adena, Maja & Huck, Steffen, 2019. "Can mass fundraising harm your core business? A field experiment on how fundraising affects ticket sales," Discussion Papers, Research Unit: Economics of Change SP II 2019-304, WZB Berlin Social Science Center.
    7. Jeworrek, Sabrina & Leisen, Bernd Josef & Mertins, Vanessa, 2021. "Gift-exchange in society and the social integration of refugees–Evidence from a survey, a laboratory, and a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 482-499.

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