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The 1/d Law of Giving


Goeree, Jacob K; McConnell, Margaret A; Mitchell, Tiffany; Tromp, Tracey; Yariv, Leeat (2009). The 1/d Law of Giving. Working paper series / Institute for Empirical Research in Economics No. 432, University of Zurich.

Abstract

We combine survey data on friendship networks and individual characteristics withnexperimental 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 preferencenfor cliques - students connect to those already close. The study is one of the first tonidentify network architecture with individual behavior in a strategic context.

We combine survey data on friendship networks and individual characteristics withnexperimental 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 preferencenfor cliques - students connect to those already close. The study is one of the first tonidentify network architecture with individual behavior in a strategic context.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Institute for Empirical Research in Economics (former)
Dewey Decimal Classification:330 Economics
Language:English
Date:September 2009
Deposited On:29 Nov 2011 20:09
Last Modified:05 Apr 2016 15:09
Series Name:Working paper series / Institute for Empirical Research in Economics
ISSN:1424-0459
Official URL:http://www.econ.uzh.ch/wp.html
Permanent URL: http://doi.org/10.5167/uzh-51884

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