Equity Versus Warm Glow in Intergenerational Giving

CentER Discussion Paper No. 2003-35

Posted: 8 Jun 2004

Date Written: 2003

Abstract

In different treatments of an intergenerational common resource experiment, monetary payoff maximization by each generation causes either negative or positive externalities for future generations. Two behavioral types have been observed previously in single generation games: equity motivated individuals enjoy giving to the needy and taking from (not giving to) the prosperous, while warm glow altruists enjoy giving unconditionally. In the examined intergenerational game, observed behavior is not consistent with the equity motive. Roughly half of the subjects maximize own monetary payoffs, while the others exhibit altruistic behavior consistent with a model of warm glow giving with constant altruistic sacrifices across treatments.

Keywords: Intergenerational equity, altruism, sustainable development, resource exploitation

JEL Classification: C73, C92, D64, Q01, Q20

Suggested Citation

Sadrieh, Abdolkarim, Equity Versus Warm Glow in Intergenerational Giving (2003). CentER Discussion Paper No. 2003-35, Available at SSRN: https://ssrn.com/abstract=555770

Abdolkarim Sadrieh (Contact Author)

University of Magdeburg ( email )

Faculty of Economics and Management
Postbox 4120
39016 Magdeburg
Germany

HOME PAGE: http://www.ww.uni-magdeburg.de

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