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Are we nice(r) to nice(r) people? - An Experimental Analysis

Author

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  • Max Albert
  • Werner Güth
  • Erich Kirchler
  • Boris Maciejovsky

Abstract

We experimentally investigate whether individuals can reliably detect cooperators in an anonymous decision environment by allowing participants to condition their choices in an asymmetric prisoner's dilemma and a trust game (i) on their partner's donation share to a self-selected charity, and (ii) on whether their partner belongs to a group with high or low average donations (group affiliation). We find that high donators achieve a higher-than-average expected payoff by cooperating predominantly with other high donators. The group affiliation proved to be irrelevant.

Suggested Citation

  • Max Albert & Werner Güth & Erich Kirchler & Boris Maciejovsky, 2002. "Are we nice(r) to nice(r) people? - An Experimental Analysis," Papers on Strategic Interaction 2002-15, Max Planck Institute of Economics, Strategic Interaction Group.
    • Handle: RePEc:esi:discus:2002-15
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    2. Alexis Garapin & Daniel Llerena & Michel Hollard, 2011. "When a Precedent of Donation Favors Defection in the Prisoner's Dilemma," German Economic Review, Verein für Socialpolitik, vol. 12(4), pages 409-421, November.
    3. Diego Gambetta & Wojtek Przepiorka, 2014. "Natural and Strategic Generosity as Signals of Trustworthiness," PLOS ONE, Public Library of Science, vol. 9(5), pages 1-9, May.
    4. Max Albert & Vanessa Mertins, 2008. "Participation and Decision Making: A Three-person Power-to-take Experiment," MAGKS Papers on Economics 200805, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Horne, Christine & Kennedy, Emily Huddart, 2017. "The power of social norms for reducing and shifting electricity use," Energy Policy, Elsevier, vol. 107(C), pages 43-52.
    6. Boulu-Reshef, Béatrice & Kuechle, Graciela & Rohland, Luise Marie, 2024. "Signaling trustworthiness with the choice of a prosocial project: Theory and experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
    7. Tracy Xiao Liu & Jenna Bednar & Yan Chen & Scott Page, 2019. "Directional behavioral spillover and cognitive load effects in multiple repeated games," Experimental Economics, Springer;Economic Science Association, vol. 22(3), pages 705-734, September.
    8. Egbert, Henrik, 2017. "The Gift and Pay-What-You-Want Pricing," MPRA Paper 82066, University Library of Munich, Germany.
    9. Servátka, Maros, 2010. "Does generosity generate generosity? An experimental study of reputation effects in a dictator game," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 11-17, January.
    10. Tomer Blumkin & Yoram Margalioth & Efraim Sadka & Adi Sharoni, 2019. "Charitable Constributions by Businesses: A Tax Policy Perspective," CESifo Working Paper Series 7836, CESifo.
    11. Banerjee, Ritwik, 2016. "Corruption, norm violation and decay in social capital," Journal of Public Economics, Elsevier, vol. 137(C), pages 14-27.
    12. Cason, Timothy N. & Savikhin, Anya C. & Sheremeta, Roman M., 2012. "Behavioral spillovers in coordination games," European Economic Review, Elsevier, vol. 56(2), pages 233-245.
    13. Massimo Finocchiaro Castro, 2005. "Behaviour in a Two-Stage Two Public Goods Experiment," Experimental 0504002, University Library of Munich, Germany.
    14. Greiff Matthias & Egbert Henrik, 2017. "The Pay-What-You-Want game: What can be learned from the experimental evidence on Dictator and Trust Games?," Management & Marketing, Sciendo, vol. 12(1), pages 124-139, March.
    15. Greiff, Matthias & Egbert, Henrik, 2016. "The Pay-What-You-Want Game and Laboratory Experiments," MPRA Paper 75222, University Library of Munich, Germany.
    16. Bonein, Aurélie & Serra, Daniel, 2007. "Another experimental look at reciprocal behavior: indirect reciprocity," MPRA Paper 3257, University Library of Munich, Germany, revised Mar 2007.
    17. Fehrler, Sebastian & Przepiorka, Wojtek, 2016. "Choosing a partner for social exchange: Charitable giving as a signal of trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 129(C), pages 157-171.
    18. Bernhard E. Reichert & Matthias Sohn, 2022. "How Corporate Charitable Giving Reduces the Costs of Formal Controls," Journal of Business Ethics, Springer, vol. 176(4), pages 689-704, April.
    19. Haley Brokensha & Lina Eriksson & Ian Ravenscroft, 2016. "Charity, signaling, and welfare," Politics, Philosophy & Economics, , vol. 15(1), pages 3-19, February.
    20. Huck, Petra, 2008. "Zur Übertragbarkeit der Erkenntnisse der experimentellen Spieltheorie auf Beobachtungen zu Gabe und Gegengabe," ZögU - Zeitschrift für öffentliche und gemeinwirtschaftliche Unternehmen, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 31(1), pages 72-87.
    21. Dolan, Paul & Galizzi, Matteo M., 2015. "Like ripples on a pond: Behavioral spillovers and their implications for research and policy," Journal of Economic Psychology, Elsevier, vol. 47(C), pages 1-16.
    22. Fehrler, Sebastian & Przepiorka, Wojtek, 2013. "Charitable Giving as a Signal of Trustworthiness: Disentangling the Signaling Benefits of Altruistic Acts," IZA Discussion Papers 7148, Institute of Labor Economics (IZA).
    23. Friedel Bolle & Jessica Kaehler, 2007. "Introducing a Signaling Institution: An Experimental Investigation," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 163(3), pages 428-447, September.

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    More about this item

    Keywords

    Game theory; Condidional Cooperation; Donation behaviour;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D3 - Microeconomics - - Distribution

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