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Bad luck vs. self-inflicted neediness – An experimental investigation of gift giving in a solidarity game |
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| Authors: | Nadja Trhal Ralf Radermacher |
| Institution: | aUniversity of Cologne, Department of Economics, Albertus-Magnus-Platz, D-50923 Köln, Germany;bUniversity of Cologne, Department for Co-operative Studies, Albertus-Magnus-Platz, D-50923 Köln, Germany;cMicro Insurance Academy, 246 Sant Nagar, East of Kailash, New Delhi 110065, India |
| 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 |
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