Te Bao, Xiaohua Yu

Social Norm and Giving with Indivisibility of Money: An Experiment on Selfishness, Equity, and Generosity

Jahrgang 175 () / Heft 2, S. 272-290 (19)
Publiziert 06.02.2019

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We study a dictator game considering selfishness, equity, and generosity. The dictators first indicate their willingness to give on a decision form and then allocate 10 yuan cash to the receiver in an envelope. The cash consists of 10 banknotes of1 yuan in treatment 1 (high divisibility) and 2 banknotes of 5 yuan in treatment 2(low divisibility). Treatment 2 only has three choices of giving .0;5;10/.30%of individuals take ceilings or floors rather than the standard rounding in treatment 2. However, the individual roundup and rounddown behaviors cancel each other at the aggregate level.

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