Impure Altruism in Dictators’ Giving

Abstract

We design an experiment to test whether the behavior of dictators can be rationalized by the impurely altruistic utility function. By giving the recipients an endowment of varying levels, we create an environment that allows for observable differences in behavior depending upon whether pure or impure altruism is the primary motivation. We find that the behavior of 66 percent of the dictators can be rationalized by the impurely altruistic utility function, while only 40 percent of the dictators make choices that are consistent with the purely altruistic utility function.Dictator Game, Impure Altruism, Incomplete Crowding Out