Bad Luck vs. Self-Inflicted Neediness - An Experimental Investigation of Gift Giving in a Solidarity Game

11 Pages Posted: 29 Jul 2009 Last revised: 27 Sep 2009

See all articles by Nadja Trhal

Nadja Trhal

University of Cologne

Ralf Radermacher

Micro Insurance Academy e.V.

Date Written: July 29, 2009

Abstract

We experimentally examine the impact of self-inflicted neediness on the solidarity behavior of subjects. In one treatment in our solidarity experiment all subjects face the same probability of becoming needy, in the other treatment subjects have the choice between a secure payment and a lottery which includes a certain probability of becoming needy. Then all subjects are asked how much they will give to losers in their group to investigate if people are willing to give the same gifts whether or not subjects are responsible for inequality in payoffs. We found evidence for allocative as well as for procedural utility concerns.

Keywords: Solidarity game, Self-inflicted neediness, Responsibility, Procedural utility

JEL Classification: C91, D63

Suggested Citation

Trhal, Nadja and Radermacher, Ralf, Bad Luck vs. Self-Inflicted Neediness - An Experimental Investigation of Gift Giving in a Solidarity Game (July 29, 2009). Journal of Economic Psychology, Vol. 30, 2009. Available at SSRN: https://ssrn.com/abstract=1440525

Nadja Trhal

University of Cologne ( email )

Albertus-Magnus-Platz
Cologne, 50923
Germany

Ralf Radermacher (Contact Author)

Micro Insurance Academy e.V. ( email )

Colmantstr. 5
Bonn, 53115
Germany

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