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Quarterly Journal of Economics Vol. 124 No. 4 2009

Directed Altruism and Enforced Reciprocity in Social Networks*

Stephen Leider1; Markus Mobius2,3; Tanya Rosenblat4; Quoc-Anh Do5

1 University of Michigan–Ann Arbor · 2 National Bureau of Economic Research · 3 Harvard University · 4 Iowa State University · 5 Singapore Management University

open access

Abstract

We conducted online field experiments in large real-world social networks in order to decompose prosocial giving into three components: (1) baseline altruism toward randomly selected strangers, (2) directed altruism that favors friends over random strangers, and (3) giving motivated by the prospect of future interaction. Directed altruism increases giving to friends by 52% relative to random strangers, whereas future interaction effects increase giving by an additional 24% when giving is socially efficient. This finding suggests that future interaction affects giving through a repeated game mechanism where agents can be rewarded for granting efficiency-enhancing favors. We also find that subjects with higher baseline altruism have friends with higher baseline altruism.

DOI
10.1162/qjec.2009.124.4.1815
Volume
124
Issue
4
Pages
1815-1851
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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