Other-regarding Preferences: Egalitarian Warm Glow, Empathy, and Group Size
Dale O. Stahl
University of Texas at Austin - Department of Economics
University of Texas at Dallas - Naveen Jindal School of Management
February 23, 2003
An abundance of experimental evidence in recent years has demonstrated the existence of other-regarding behavior in the laboratory. In a series of dictator experiments, we investigate the effects of warm glow egalitarianism, empathy, and their interaction with group size. We find that the random-payoff method may distort incentives in favor of egalitarian behavior by allowing for path-dependent egalitarian warm glow to outweigh monetary payoffs. Though we find some evidence for empathy, it nevertheless appears that a group size of six or more neutralizes most other-regarding behavior in many-recipient dictator games.
Number of Pages in PDF File: 29
Keywords: Warm glow, egalitarianism, empathy, group size, dictator games
JEL Classification: C15, C52, C72working papers series
Date posted: June 25, 2003
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