Abstract

http://ssrn.com/abstract=1534941
 


 



Whose Money is it Anyway? Ingroups and Distributive Behavior


David Chavanne


George Mason University

Kevin A. McCabe


George Mason University - Department of Economics; George Mason University School of Law

Maria Pia Paganelli


Trinity University

January 11, 2010


Abstract:     
Price theory is often used to explain reactions to rebates and subsidies that are meant to encourage charitable giving. This paper describes the results of a laboratory experiment that tests standard price theory alongside an alternative perspective based on research on the perceptions and behavior of in-groups. Using a modified dictator game, we find that rebates that decrease the price of giving only increase amounts given when they are exogenously funded by the experimenters. When rebates are funded by members of one’s group, the decreased price of giving does not lead to increased amounts given. The result suggests that the presence of an in-group mentality can mediate the relationship between giving and price.

Keywords: dictator game, price theory, altruism, ingroups

working papers series


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Date posted: January 12, 2010  

Suggested Citation

Chavanne, David and McCabe, Kevin A. and Paganelli, Maria Pia, Whose Money is it Anyway? Ingroups and Distributive Behavior (January 11, 2010). Available at SSRN: http://ssrn.com/abstract=1534941

Contact Information

David Chavanne (Contact Author)
George Mason University ( email )
4400 University Drive
Fairfax, VA 22030
United States
Kevin A. McCabe
George Mason University - Department of Economics ( email )
4400 University Drive
Fairfax, VA 22030
United States
George Mason University School of Law ( email )
3301 Fairfax Drive
Arlington, VA 22201
United States
Maria Pia Paganelli
Trinity University ( email )
Dept. of Economics
One Trinity Place
San Antonio, TX 78212
United States
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