From the Heart
Rewarding Altruism? A Natural Field Experiment
Nicola Lacetera, Mario Macis & Robert Slonim
NBER Working Paper, December 2011
Abstract:
We present evidence from a natural field experiment involving nearly 100,000 individuals on the effects of offering economic incentives for blood donations. Subjects who were offered economic rewards to donate blood were more likely to donate, and more so the higher the value of the rewards. They were also more likely to attract others to donate, spatially alter the location of their donations towards the drives offering rewards, and modify their temporal donation schedule leading to a short-term reduction in donations immediately after the reward offer was removed. Although offering economic incentives, combining all of these effects, positively and significantly increased donations, ignoring individuals who took additional actions beyond donating to get others to donate would have led to an under-estimate of the total effect, whereas ignoring the spatial effect would have led to an over-estimate of the total effect. We also find that individuals who received a reward by surprise were less likely to donate after the intervention than subjects who received no reward, suggesting that for some individuals a surprise reward adversely affected their intrinsic motivations. We discuss the implications of these findings for understanding pro-social behavior.
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Leading by words: A voluntary contribution experiment with one-way communication
Anastasios Koukoumelis, Vittoria Levati & Johannes Weisser
Journal of Economic Behavior & Organization, forthcoming
Abstract:
We use experimental methods to study the power of leading by words. The context is a voluntary contribution mechanism with one-way communication. One group member can send a free-form text message to his fellow players. Contrary to the commonly-accepted wisdom that the cooperation-enhancing effect of communication requires the mutual exchange of promises, we find that the introduction of one-way communication increases contributions substantially and decreases their variation. When communication is one-shot, its effect on contribution levels persists over time. Moreover, one-way communication is effective even in the absence of strategic concerns.
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Dimitry Rtischev
Journal of Evolutionary Economics, December 2011, Pages 757-782
Abstract:
Why are humans so vulnerable to pain in interpersonal relations and can so easily hurt others physically and emotionally? We theoretically examine whether being offensively strong but defensively weak can evolve as a strategic trait that fosters cooperation. We study a population comprised of "thick-skinned" and "thin-skinned" agents by using an indirect evolution model that combines rational choice in strategic interactions with evolutionary selection across generations. We find that (a) the relatively vulnerable and cooperative thin-skins cannot evolve under purely random matching, (b) with some assortment thin-skins evolve and can take over the entire population, (c) vulnerability to greater pain makes it easier for thin-skins to evolve, and (d) proximate pain which merely feels bad but does not lower fitness helps thin-skins evolve even more than pain which accurately reflects fitness consequences. We draw contrast with the Hawk-Dove model and identify several ways in which rationality hinders the evolution of the relatively vulnerable and peaceful type of agent.
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Crowding-Out Charitable Contributions in Canada: New Knowledge from the North
James Andreoni & Abigail Payne
NBER Working Paper, December 2011
Abstract:
Using data from charitable organizations in the US, authors have established that government grants to charities largely crowd out giving from other sources, but that this reduction is due mostly to reduced fundraising activities of the charity itself. We use much more detailed data from over 6000 charities in Canada, measured for up to 15 years, to provide valuable new insights into this phenomenon. In particular, dollars received from individuals is largely unchanged by government grants. Instead, the crowding out is attributable to two other sources of donations not differentiated in US data: giving from other charities and charitable foundations, and donations gained from special fundraising activities, like galas or sponsorships. Only the latter-which is about half of the measured crowding out-represents a potential loss of dollars to the charitable sector as a result of government grants.
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Context Modularity of Human Altruism
Marcus Alexander & Fotini Christia
Science, 9 December 2011, Pages 1392-1394
Abstract:
Whereas altruism drives the evolution of human cooperation, ethno-religious diversity has been considered to obstruct it, leading to poverty, corruption, and war. We argue that current research has failed to properly account for the institutional environment and how it affects the role diversity plays. The emergence of thriving, diverse communities throughout human history suggests that diversity does not always lead to cooperation breakdown. We conducted experiments in Mostar, Bosnia-Herzegovina with Catholic Croats and Muslim Bosniaks at a critical historic moment in the city's postwar history. Using a public goods game, we found that the ability to sanction is key to achieving cooperation in ethno-religiously diverse groups, but that sanctions succeed only in integrated institutional environments and fail in segregated ones. Hence, we show experimentally for the first time in a real-life setting that institutions of integration can unleash human altruism and restore cooperation in the presence of diversity.
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The economic value of a meeting: Evidence from an investment game experiment
Leonardo Becchetti et al.
Rationality and Society, November 2011, Pages 403-426
Abstract:
The decrease of social distance between subjects and between subjects and experimenters facilitates the deviation from purely selfish behavior in different experimental contexts. Even though the effects of social distance reduction are widely documented, little is known about subjects' preferences for anonymity, and in particular about the willingness to remove it if they are given the opportunity. In a variant of the investment game we give players the opportunity to decrease the social distance and investigate three main issues: a) how many subjects decide to remove anonymity when this is allowed; b) how this choice is associated with their behavior in the game; c) why should rational subjects opt for removing anonymity. Evidence shows that a significant number of subjects (43.5%) expects to obtain a positive utility by meeting their counterpart and they are ready to risk and/or lose money to get this utility.
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Diversity and Donations: The Effect of Religious and Ethnic Diversity on Charitable Giving
James Andreoni et al.
NBER Working Paper, November 2011
Abstract:
We explore the effects of local ethnic and religious diversity on individual donations to private charities. Using 10-year neighborhood-level panels derived from personal tax records in Canada, we find that diversity has a detrimental effect on charitable donations. A 10 percentage point increase in ethnic diversity reduces donations by 14%, and a 10 percentage point increase in religious diversity reduces donations by 10%. The ethnic diversity effect is driven by a within-group disposition among non-minorities, and is most evident in high income, but low education areas. The religious diversity effect is driven by a within-group disposition among Catholics, and is concentrated in high income and high education areas. Despite these large effects on amount donated, we find no evidence that increasing diversity affects the fraction of households that donate. Over the period studied, ethnic diversity rises by 6 percentage points and religious diversity rises by 4 percentage points; our results suggest that charities receive about 12% less in total donations. As areas like North America continue to grow more diverse over time, our results imply that these demographic changes may have significant implications for the charitable sector.
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Exploring the Effects of Working for Endowments on Behaviour in Standard Economic Games
Freya Harrison & Claire El Mouden
PLoS ONE, November 2011, e27623
Abstract:
In recent years, significant advances have been made in understanding the adaptive (ultimate) and mechanistic (proximate) explanations for the evolution and maintenance of cooperation. Studies of cooperative behaviour in humans invariably use economic games. These games have provided important insights into the mechanisms that maintain economic and social cooperation in our species. However, they usually rely on the division of monetary tokens which are given to participants by the investigator. The extent to which behaviour in such games may reflect behaviour in the real world of biological markets - where money must be earned and behavioural strategies incur real costs and benefits - is unclear. To provide new data on the potential scale of this problem, we investigated whether people behaved differently in two standard economic games (public goods game and dictator game) when they had to earn their monetary endowments through the completion of dull or physically demanding tasks, as compared with simply being given the endowment. The requirement for endowments to be 'earned' through labour did not affect behaviour in the dictator game. However, the requirement to complete a dull task reduced cooperation in the public goods game among the subset of participants who were not familiar with game theory. There has been some effort to test whether the conclusions drawn from standard, token-based cooperation games adequately reflect cooperative behaviour 'in the wild.' However, given the almost total reliance on such games to study cooperation, more exploration of this issue would be welcome. Our data are not unduly worrying, but they do suggest that further exploration is needed if we are to make general inferences about human behaviour from the results of structured economic games.
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Janelle Kerlin & Tom Pollak
American Review of Public Administration, November 2011, Pages 686-704
Abstract:
This article examines whether there has been an increase in nonprofit commercial revenue and if so whether declines in government grants and private contributions were behind the rise. A number of nonprofit scholars have held that nonprofit commercial activity increased significantly during the 1980s and 1990s. Following on resource dependency theory, they suggest that nonprofits use commercial income as a replacement for lost government grant and private revenue. However, authors for and against this thesis have provided little empirical evidence to test these claims. This study uses the Internal Revenue Services' Statistics of Income database to track sources of revenue for charitable nonprofit organizations from 1982 to 2002. Trend and panel analysis show that although there was a large increase in commercial revenue, there is little evidence the increase was associated with declines in government grants and private contributions. Findings point to institutional theory and have important implications for policymakers and nonprofit practitioners.
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"Remain Calm. Be Kind." Effects of Relaxing Video Games on Aggressive and Prosocial Behavior
Jodi Whitaker & Brad Bushman
Social Psychological and Personality Science, January 2012, Pages 88-92
Abstract:
Research shows that violent video games increase aggressive behavior and decrease prosocial behavior, but could relaxing video games have the opposite effects? In two experiments, participants were randomly assigned to play a relaxing, neutral, or prosocial video game for 20 min. In Experiment 1, participants competed with an ostensible partner on a competitive reaction time task in which they could behave in an aggressive manner (by blasting their partner with loud noise), or in a prosocial manner (by giving their partner money). In Experiment 2, participants reported their mood after playing the video game. After the study was over, they could help the experimenter by sharpening pencils. Compared to those who played violent or neutral video games, those who played relaxing video games were less aggressive and more helpful. Playing a relaxing video game put people in a good mood, and those in a good mood were more helpful.
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Motives for volunteering are associated with mortality risk in older adults
Sara Konrath et al.
Health Psychology, forthcoming
Objective: The purpose of this study is to examine the effects of motives for volunteering on respondents' mortality risk 4 years later.
Methods: Logistic regression analysis was used to examine whether motives for volunteering predicted later mortality risk, above and beyond volunteering itself, in older adults from the Wisconsin Longitudinal Study. Covariates included age, gender, socioeconomic variables, physical, mental, and cognitive health, health risk behaviors, personality traits, received social support, and actual volunteering behavior.
Results: Replicating prior work, respondents who volunteered were at lower risk for mortality 4 years later, especially those who volunteered more regularly and frequently. However, volunteering behavior was not always beneficially related to mortality risk: Those who volunteered for self-oriented reasons had a mortality risk similar to nonvolunteers. Those who volunteered for other-oriented reasons had a decreased mortality risk, even in adjusted models.
Conclusions: This study adds to the existing literature on the powerful effects of social interactions on health and is the first study to our knowledge to examine the effect of motives on volunteers' subsequent mortality. Volunteers live longer than nonvolunteers, but this is only true if they volunteer for other-oriented reasons.
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Breaking the norm: An empirical investigation into the unraveling of good behavior
Ruth Vargas Hill, Eduardo Maruyama & Angelino Viceisza
Journal of Development Economics, forthcoming
Abstract:
We present results from an artefactual field experiment conducted in rural Peru that considers whether observing non-reciprocal behavior influences an individual's decision to reciprocate. Specifically, we consider the behavior of second movers in a trust game, assessing whether their decision to reciprocate is influenced by the observed reciprocity of others. In documenting the impact of an external shock to observed reciprocity, this paper shows that small increases in non-reciprocal behavior result in an unraveling of the norm of reciprocity. Survey data is used to explore mechanisms by which this occurred. Results are not consistent with learning effects, suggesting that preferences may be changed by observing others deviating from a norm of reciprocity. These results suggest that investing in encouraging trustworthy behavior can have large benefits in situations where individuals are observing each other's behavior, such as may be the case in a new market institution.
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Blue-Collar Public Servants: How Union Membership Influences Public Service Motivation
Randall Davis
American Review of Public Administration, November 2011, Pages 705-723
Abstract:
This study examines whether the norms and values of labor unions contradict public service motivation (PSM). Using Perry and Wise's conceptualization of (PSM) this article tests four hypotheses by analyzing both quantitative data drawn from the employees of a large metropolitan city and qualitative data drawn from semistructured interviews conducted in two large Midwestern cities. I expect that as employees become socialized into union membership, they will increasingly identify with rational, affective, and normative union motives. The quantitative findings suggest that union socialization is associated with lower compassion, higher self-sacrifice, and greater commitment to the public interest. Union socialization is unrelated to attraction to policy making. This study supports the hypotheses that unions shape members' motives through the socialization process. I rebut the argument that public sector union members are solely self-interested, but the findings suggest that union socialization can undermine one's feelings of compassion.
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The value of private versus public risk and pure altruism: An experimental economics test
Kent Messer, Gregory Poe & William Schulze
Applied Economics, Spring 2013, Pages 1089-1097
Abstract:
In 1996, Johannesson et al. published a paper entitled 'The Value of Private Safety versus the Value of Public Safety'. Based on the preliminary evidence from a hypothetical contingent valuation study for public and private safety, these authors argue that consumers behave as 'pure altruists' who consider the cost of a program that might be imposed on other voters when they determine their maximum willingness-to-pay for public safety programs. The authors conclude that further empirical research in this area is warranted. This article presents a set of laboratory economics experiments to test Johannesson et al.'s conjecture under controlled conditions in which participants face an actual risk of financial loss. The laboratory results extend those of Johannesson et al.'s, providing strong evidence of pure altruism in coercive settings involving public risks.