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Directed Generosity and Network Formation: Network Dimension Matters

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  • D'Exelle, Ben

    (University of East Anglia)

  • Riedl, Arno

    (Maastricht University)

Abstract

We explore network effects on generosity for different network dimensions. To this end we elicit multiple network dimensions (friendship, social support, economic exchange, etc.) in a rural village in the Southern hemisphere and measure generosity with a sequence of dictator games conducted in the field. We find that networks of different dimensions differ substantially in density, clustering, and centrality. When relating generosity to networks we observe that social distance only matters for friendship ties but that structural network variables are important in all network dimensions. Importantly, these effects are not invariant across different network dimensions. We also find that individual characteristics are unrelated with generosity per se but that they have strong explanatory power for network formation.

Suggested Citation

  • D'Exelle, Ben & Riedl, Arno, 2010. "Directed Generosity and Network Formation: Network Dimension Matters," IZA Discussion Papers 5356, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5356
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    Cited by:

    1. Binzel, Christine & Fehr, Dietmar, 2013. "Social distance and trust: Experimental evidence from a slum in Cairo," Journal of Development Economics, Elsevier, vol. 103(C), pages 99-106.
    2. Perkins, Jessica M. & Subramanian, S.V. & Christakis, Nicholas A., 2015. "Social networks and health: A systematic review of sociocentric network studies in low- and middle-income countries," Social Science & Medicine, Elsevier, vol. 125(C), pages 60-78.
    3. Binzel, Christine & Fehr, Dietmar, 2013. "Giving and sorting among friends: Evidence from a lab-in-the-field experiment," Economics Letters, Elsevier, vol. 121(2), pages 214-217.
    4. Riyanto, Yohanes E. & Jonathan, Yeo X.W., 2018. "Directed trust and trustworthiness in a social network: An experimental investigation," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 234-253.

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    More about this item

    Keywords

    networks; generosity; network formation; experiments;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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