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Impure altruism or inequality aversion? An experimental investigation based on income effects

Chowdhury, S. M. and Jeon, J. Y. (2014) Impure altruism or inequality aversion? An experimental investigation based on income effects. Journal of Public Economics, 118. pp. 143-150. ISSN 0047-2727

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To link to this item DOI: 10.1016/j.jpubeco.2014.07.003

Abstract/Summary

We investigate the consequences of a pure income effect on the altruistic behavior of donors. Inequality aversion theories predict either no effect or a decrease in giving, whereas impure altruism theory predicts an increase in giving with an increase in the common income of donor and receiver. Theoretical predictions being contradictory, we run a dictator game in which we vary the common show-up fee of both the dictator and the recipient, while keeping an extra amount to be shared the same. The results are in line with the prediction of the impure altruism theory.

Item Type:Article
Refereed:Yes
Divisions:Faculty of Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:72972
Publisher:Elsevier

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