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Reluctant altruism and peer pressure in charitable giving

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  • Reyniers, Diane
  • Bhalla, Richa

Abstract

Subjects donate individually (control group) or in pairs (treatment group). Those in pairs reveal their donation decision to each other. Average donations in the treatment group are significantly higher than in the control group. Paired subjects have the opportunity to revise their donation decision after discussion. Pair members shift toward each others' initial decisions. Subjects are happier with their decision when their donations are larger, but those in pairs are less happy, controlling for amount donated. These findings suggest reluctant altruism due to peer pressure in charitable giving.

Suggested Citation

  • Reyniers, Diane & Bhalla, Richa, 2013. "Reluctant altruism and peer pressure in charitable giving," LSE Research Online Documents on Economics 48779, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:48779
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    File URL: http://eprints.lse.ac.uk/48779/
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    More about this item

    Keywords

    charitable giving; altruism; peer pressure; happiness;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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