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Warm glow of giving collectively – An experimental study
Institution:1. Department of Economics and Finance, University of Wyoming, 1000 E. University Ave., Laramie, WY 82071, United States;2. HUI Research AB, 103 29 Stockholm, Sweden;3. AgriFood Economics Centre, Lund University School of Economics and Management, Box 730, 220 07 Lund, Sweden;4. Department of Food and Resource Economics, University of Copenhagen, Rolighedsvej 25, 1958 Frederiksberg C, Denmark;1. Faculty of Law and Economics, Saarland University, P.O. 15 11 50, 66041 Saarbruecken, Germany;2. Institute for Management, University of Koblenz-Landau, Universitätsstraße 1, 56070 Koblenz, Germany;1. Department of Economics, Catholic University of Milan, Largo Gemelli 1, 20126 Milan, Italy;2. LCSR, National Research University, Higher School of Economics, Russian Federation;3. Department of Economics and Neuro-Mi, University of Milan Bicocca, Piazza dell’Ateneo Nuovo 1, 20126 Milan, Italy
Abstract:We report on an experiment to test for a warm glow of giving collectively. Comparing subjects’ affective state before and after the experiment, we find that individual charitable donations create a feeling of warm glow while collective donations do not. Proposing to donate the full endowment collectively improves subjects’ affective state significantly, though the behavioral data suggests that this result cannot be explained by the notion of expressive voting. We also find that subjects who consider Kant’s Categorical Imperative to be an important guideline for individual decisions are more likely to donate the full endowment to charity. This result supports the notion of Kantian thinking as an independent factor explaining cooperative behavior (Roemer, 2014).
Keywords:Warm glow of giving  Collective decision  Charity  Economic experiment  Immanuel Kant  Affect
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