Hyper-altruistic behavior vanishes with high stakes.

ABSTRACT: Using an incentivized experiment with statistical power, this paper explores the role of stakes in charitable giving of lottery prizes, where subjects commit to donate a fraction of the prize before they learn the outcome of the lottery. We study three stake levels: 5€ (n = 177), 100€ (n = 168), and 1,000€ (n = 171). Although the donations increase in absolute terms as the stakes increase, subjects decrease the donated fraction of the pie. However, people still share roughly 20% of 1,000€, an amount as high as the average monthly salary of people at the age of our subjects. The number of people sharing 50% of the pie is remarkably stable across stakes, but donating the the whole pie-the modal behavior in charity-donation experiments-disappears with stakes. Such hyper-altruistic behavior th

SUBMITTER: Branas-Garza P 

PROVIDER: S-EPMC8386826 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature