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Hyper-altruistic behavior vanishes with high stakes.

Pablo Brañas-Garza1,2, Diego Jorrat1,2, Jaromír Kovářík3,4,5

  • 1Department of Economics, Universidad Loyola Andalucía, Córdoba, Spain.

Plos One
|August 25, 2021
PubMed
Summary
This summary is machine-generated.

Higher stakes in charitable giving experiments reduce the donated fraction, though absolute donations increase. Hyper-altruistic behavior, like donating the whole prize, is an artifact of low-stakes experiments.

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Area of Science:

  • Behavioral Economics
  • Experimental Economics
  • Psychology

Background:

  • Charitable giving is influenced by various factors, including perceived stakes.
  • Previous research often uses low-stakes scenarios, potentially overestimating altruistic behavior.

Purpose of the Study:

  • To investigate the impact of varying stakes on charitable giving decisions.
  • To determine if high-stakes scenarios alter donation behavior compared to low-stakes experiments.

Main Methods:

  • An incentivized experiment with statistical power was conducted.
  • Participants committed to donating a fraction of lottery prizes across three stake levels: 5€, 100€, and 1,000€.

Main Results:

  • Absolute donations increased with higher stakes, but the donated fraction decreased.
  • Donating 50% of the prize remained stable, while donating the entire prize disappeared at higher stakes.
  • Significant sharing occurred even at 1,000€, equivalent to a monthly salary.

Conclusions:

  • Sharing is a prevalent human trait, but stakes significantly influence donation behavior.
  • Hyper-altruism in experiments may be an artifact of low stakes.
  • Prosocial policies need to consider the role of stakes for effective calibration.