Other-Regarding Preferences and Giving Decision in Risky Environments: Experimental Evidence

GATE WP 1815 – September 2018

37 Pages Posted: 5 Oct 2018

See all articles by Mickaël Beaud

Mickaël Beaud

University of Montpellier

Mathieu Lefebvre

University of Strasbourg

Julie Rosaz

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Date Written: September 12, 2018

Abstract

This paper investigates if and how other-regarding preferences governing giving decisions in dictator games are affected in risky environments in which the payoff of the recipient is random. We demonstrate that, whenever the risk is actuarially neutral, the donation of dictators with a purely ex post view of fairness should, in general, be affected by the riskyness of the recipient’s payoff, while dictators with a purely ex ante view should not be. Our experimental data give weak empirical support to the purely ex post view of fairness.

Keywords: Laboratory Experiments Dictator Games, Background Risk, Other-Regarding Preferences, Inequality Aversion, Impure Altruism, Ex Ante and Ex Post Views of Fairness

JEL Classification: C91, D64, D81

Suggested Citation

Beaud, Mickaël and Lefebvre, Mathieu and Rosaz, Julie, Other-Regarding Preferences and Giving Decision in Risky Environments: Experimental Evidence (September 12, 2018). GATE WP 1815 – September 2018 , Available at SSRN: https://ssrn.com/abstract=3248343

Mickaël Beaud (Contact Author)

University of Montpellier ( email )

163 rue Auguste Broussonnet
France

Mathieu Lefebvre

University of Strasbourg

61, avenue de la foret noire
Strasbourg, Alsace 3000
France

Julie Rosaz

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

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