Homa S. Zarghamee, Kent D. Messer, Jacob R. Fooks, William D. Schulze, Shang Wu, and Jubo Yan, “Nudging Charitable Giving: Three Field Experiments.” Journal of Behavioral and Experimental Economics 66: 137-
149, February 2017 [abstract here].
• Study 1: Students had earned money over the duration of the semester by taking part in experiments; this study asked them if they wanted to donate some or all of their earnings to charity.
• Envelopes were provided such that students could either donate some of their earnings (opting in to charity, n=69), or, request a refund from the contribution of their money (opting out of charity, n=118).
• The opt-out version increases contributions by some 25%.
• Study 2 (n at most 59) looks at whether some cheap talk and a vote prior to deciding to contribute to charity – and potentially to keep donating for 10 months – can induce more giving than without the chitchat and vote. The cheap talk does the (cheap) trick, inducing higher donations by some 47%.
• Study 3 (n=70) involves one treatment where the charity mentions HIV, whereas the other treatment does not. The treatment makes no difference to donations, but changes to positive and negative affect during the experiment do influence giving. A lower positive affect decreases giving, but an increase in negative affect increases giving.
Friday, February 23, 2018
Bosman, Hennig‐Schmidt, and van Winden (2016) on Power-to-Take Games
Ronald Bosman, Heike Hennig‐Schmidt, and Frans van Winden, “Emotion at Stake: The Role of Stake Size and Emotions in a Power-To-Take Game Experiment in China with a Comparison to Europe.” CESifo Working Paper Series No. 5858, April 19, 2016.
• In the two-player power-to-take game, Player A indicates what percentage of Player B’s monetary endowment Player A will claim.
• Player B learns of A’s claim, and then can choose to destroy some or all of her own endowment. Whatever is left after the destruction, Player A receives the chosen percentage of it, while Player B retains the remainder.
• Power-to-take is sort of a generalized version of the ultimatum game, and in particular, it allows Player B to have intermediate responses, in between accepting Player A’s suggestion or destroying the entire “endowment.”
• Three conditions: China Low (stakes), n=36; China High, n=36; and, EU, n=40. The results for the two China treatments are similar.
• Take rates in China average more than 50%; while most people do not destroy any of their endowment, the average amount of destruction is considerable, more than 20%. Higher take rates lead to more destruction.
• Higher take rates strengthen negative emotions in Players B, and it is possibly worse with higher stakes.
• Destruction decisions seem to be mostly driven by emotions.
• The results, including emotional responses, seem to be similar in China and Europe.
• In the two-player power-to-take game, Player A indicates what percentage of Player B’s monetary endowment Player A will claim.
• Player B learns of A’s claim, and then can choose to destroy some or all of her own endowment. Whatever is left after the destruction, Player A receives the chosen percentage of it, while Player B retains the remainder.
• Power-to-take is sort of a generalized version of the ultimatum game, and in particular, it allows Player B to have intermediate responses, in between accepting Player A’s suggestion or destroying the entire “endowment.”
• Three conditions: China Low (stakes), n=36; China High, n=36; and, EU, n=40. The results for the two China treatments are similar.
• Take rates in China average more than 50%; while most people do not destroy any of their endowment, the average amount of destruction is considerable, more than 20%. Higher take rates lead to more destruction.
• Higher take rates strengthen negative emotions in Players B, and it is possibly worse with higher stakes.
• Destruction decisions seem to be mostly driven by emotions.
• The results, including emotional responses, seem to be similar in China and Europe.
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