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Models to the issue of altruism which rely on externalities of well-being are rarely used explicitly. In this paper we compare such utility-based approaches with the standard approach on altruism which is based on externalities of income. Testable differences of both types of models are derived...
Persistent link: https://www.econbiz.de/10010297232
For many people "solidarity" has become a meaningless word used in slogans - too often used without leading to any economic consequences. We show in this paper conditions under which solidarity can be a powerful instrument. In a solidary action, an individual in a group contributes to a series...
Persistent link: https://www.econbiz.de/10010297236
In Dictator Game experiments where the information status of the participants varies we find that a certain type of proposer tends to reduce his offers when the recipient has incomplete information about the pie size. We also find that a certain type of recipient tends to reject too small offers...
Persistent link: https://www.econbiz.de/10010297250
Most voting models in the literature neglect abstention, but is such a simplification justified? I investigate this question in a model with outside pressure on voters. For sequential voting (e.g., roll call votes), with and without an abstention option, there is a unique subgame perfect...
Persistent link: https://www.econbiz.de/10014485815
When including outside pressure on voters as individual costs, sequential voting (as in roll call votes) is theoretically preferable to simultaneous voting (as in recorded ballots). Under complete information, sequential voting has a unique subgame perfect equilibrium with a simple equilibrium...
Persistent link: https://www.econbiz.de/10014497559
In random voting, the committee chair, whose vote decides in the case of a draw, is more often decisive than ordinary voters. Therefore, in the power indices literature, the committee chair is said to be more powerful. Players with a veto right are even more powerful still. Similarly, the...
Persistent link: https://www.econbiz.de/10014501610
Persistent link: https://www.econbiz.de/10014521839
In the Solidarity game lucky winners of a lottery can transfer part of their income to unlucky losers. Will losers get smaller transfers if they can be assumed to be responsible for their zero income because they have chosen riskier lotteries? Or will risk-lovers and riskaverters favor those who...
Persistent link: https://www.econbiz.de/10010319174
Persistent link: https://www.econbiz.de/10014524559
In the Solidarity Game (Selten and Ockenfels, 1998), two "rich" persons can support a "poor" one. A strong positive correlation between one rich person's solidarity contribution and his expected contribution of the other is observed. This paper investigates the causality behind this correlation....
Persistent link: https://www.econbiz.de/10010297227