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Why Do People Give? Testing Pure and Impure Altruism
Author(s) -
Mark Ottoni–Wilhelm,
Lise Vesterlund,
Huan Xie
Publication year - 2017
Publication title -
american economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.936
H-Index - 297
eISSN - 1944-7981
pISSN - 0002-8282
DOI - 10.1257/aer.20141222
Subject(s) - altruism (biology) , measure (data warehouse) , economics , power (physics) , social psychology , microeconomics , econometrics , psychology , computer science , physics , thermodynamics , database
The extant experimental design to investigate warm glow and altruism elicits a single measure of crowd-out. Not recognizing that impure altruism predicts crowd-out is a function of giving-by-others, this design's power to reject pure altruism varies with the level of giving-by-others, and it cannot identify the strength of warm glow and altruism preferences. These limitations are addressed with a new design that elicits crowd-out at a low and at a high level of giving-by-others. Consistent with impure altruism we find decreasing crowd-out as giving-by-others increases. However warm glow is weak in our experiment and altruism largely explains why people give.

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