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For love or reward? Characterising preference for giving to parents in an experimental setting

Maria Porter () and Abi Adams

No W14/13, IFS Working Papers from Institute for Fiscal Studies

Abstract: This paper examines the motivation for intergenerational transfers between adult children and their parents, and the nature of preferences for such giving behaviour, in an experimental setting. Participants in our experiment play a series of dictator games with parents and strangers, in which we vary endowments and prices for giving to each recipient. We fi?nd that preferences for giving are typically rational. When parents are recipients as opposed to strangers, participants display greater sensitivity to the price of giving, and a higher relative proclivity for giving. Our ?findings also provide evidence of reciprocal motivations for giving, as players give more to parents who have full information regarding the context in which giving occurs.

New Economics Papers: this item is included in nep-cbe and nep-exp
Date: 2014-07-16
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Journal Article: For Love or Reward? Characterising Preferences for Giving to Parents in an Experimental Setting (2016) Downloads
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