When ignorance is bliss: information asymmetries enhance prosocial behavior in dicator games

Evguenia Winschel and Philipp Zahn

No 13-07, Working Papers from University of Mannheim, Department of Economics

Abstract: In most laboratory experiments concerning prosocial behavior subjects are fully informed how their decision influences the payoff of other players. Outside the laboratory, however, individuals typically have to decide without such detailed knowledge. To asses the effect of information asymmetries on prosocial behavior, we conduct a laboratory experiment with a simple non-strategic interaction. A dictator has only limited knowledge about the benefits his prosocial action generates for a recipient. We observe subjects with heterogenous social preferences. While under symmetric information only individuals with the same type of preferences transfer, under asymmetric information different types transfer at the same time. As a consequence and the main finding of our experiment, uninformed dictators behave more prosocially than informed dictators.

Keywords: Asymmetric Information; Prosocial Behavior; Efficiency Concern; Inequality Aversion; Dictator Game (search for similar items in EconPapers)
JEL-codes: C91 D82 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-cbe, nep-cta, nep-exp, nep-gth and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:mnh:wpaper:36632

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