Abstract
We consider a dictator game experiment in which dictators perform a sequence of giving tasks and taking tasks. The data is used to estimate the parameters of a Stone-Geary utility function over own-payoff and other’s payoff. The econometric model incorporates zero observations (e.g. zero-giving or zero-taking) by applying the Kuhn-Tucker theorem and treating zeros as corner solutions in the dictator’s constrained optimisation problem. The method of maximum simulated likelihood (MSL) is used for estimation. We find that selfishness is significantly lower in taking tasks than in giving tasks, and we attribute this difference to the “cold prickle of taking”.
Original language | English |
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Pages (from-to) | 226–243 |
Number of pages | 18 |
Journal | Journal of the Economic Science Association-JESA |
Volume | 7 |
Early online date | 3 Dec 2021 |
DOIs | |
Publication status | Published - Dec 2021 |