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Comparing real and hypothetical incentives in giving and money burning experiments

Author

Listed:
  • David Masclet

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Thérèse Rebière

    (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM], CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)

Abstract

This paper examines experimentally how social and anti-social decisions respond to hypothetical or real incentives. Our experiment consists of three games: i) a Modified Dictator Game, ii) a Money Giving Game, and iii) a Money Burning Game. Although we find different size effects (quantitative differences) across treatments, our data indicate very similar directional changes (qualitative similarities) relative to initial endowment distribution and the price of the decision. These findings suggest that if we are mainly interested in qualitative (directional) findings, then using hypothetical incentives may be relevant and considered as a diluted version of the real ones.

Suggested Citation

  • David Masclet & Thérèse Rebière, 2023. "Comparing real and hypothetical incentives in giving and money burning experiments," Post-Print hal-04534560, HAL.
  • Handle: RePEc:hal:journl:hal-04534560
    DOI: 10.2307/48754785
    as

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