Loss and Other-Regarding Preferences
21 Pages Posted: 23 Mar 2014 Last revised: 6 Mar 2015
Date Written: March 1, 2014
In this paper, I study the other-regarding preferences of decision makers in the domain of losses in the dictator game. I find that even after a loss of two-thirds of their endowments allocators are still other-regarding toward their recipients. Furthermore, the more “needy” the recipients are, the more benevolent the allocators become, implying that even in loss scenarios allocators are concerned with the well-being of their counterparts.
Keywords: Dictator Games, Loss, Other-Regarding Preferences
JEL Classification: C90, D63, D64, I30
Suggested Citation: Suggested Citation