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The 1/d law of giving


Goeree, Jacob K; McConnell, Margaret A; Mitchell, Tiffany; Tromp, Tracey; Yariv, Leeat (2010). The 1/d law of giving. American Economic Journal: Microeconomics, 2(1):183-203.

Abstract

We combine survey data on friendship networks and individual characteristics with experimental observations from dictator games. Dictator offers are primarily explained by social distance - giving follows a simple inverse distance law. While student demographics play a minor role in explaining offer amounts, individual heterogeneity is important for network formation. In particular, we detect significant homophilous behavior - students connect to others similar to them. Moreover, the network data reveal a strong preference for cliques - students connect to those already close. The study is one of the first to identify network architecture with individual behavior in a strategic context.

We combine survey data on friendship networks and individual characteristics with experimental observations from dictator games. Dictator offers are primarily explained by social distance - giving follows a simple inverse distance law. While student demographics play a minor role in explaining offer amounts, individual heterogeneity is important for network formation. In particular, we detect significant homophilous behavior - students connect to others similar to them. Moreover, the network data reveal a strong preference for cliques - students connect to those already close. The study is one of the first to identify network architecture with individual behavior in a strategic context.

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Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:February 2010
Deposited On:17 Jan 2011 10:48
Last Modified:05 Apr 2016 14:35
Publisher:American Economic Association
ISSN:1945-7669
Publisher DOI:10.1257/mic.2.1.183
Permanent URL: http://doi.org/10.5167/uzh-42459

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