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Analyze What Lies Behind The Act Of Warm Glow Giving?

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Analyze What Lies Behind The Act Of Warm Glow Giving?
10.3 Empirical Design
To analyze what lies behind the act of warm glow giving, Nakamoto (2013) carried out a two stage experiments. In the first stage, Nakamoto (2013) used Crumpler and Grossman (2008) dictator game. In the second stage, he asked the players for an extra contribution based on the rule of the first stage.
The experiment was carried out at two large universities, Kyushu Sangyo Universi-ty (KSU) and Kyushu University (KU) where the subjects were selected from vari-ous academic disciplines. Five sessions were organized on twenty-thirty students; a total of 110 students (56 males and 54 females). One session at KSU comprised of 30 students and rest of the four sessions at KU comprised of 20 students where four sessions were carried
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Four allocation problems (A, B, C, and D) were given to the subjects. For each alloca-tion problem they were asked about how they would allocate 2000 yen (self vs. charity). The subjects were told that after they answered all the four allocation problems, the attendant would at random draw one ball labeled A, B, C, or D from a closed box, and that the subject’s decision for the problem which corresponds to the chosen ball would be played out for real. Knowing this method of the experi-ment, gave the subjects a motivation to make all the choices seriously. For each allocation problem the subjects would write their donation amount on the remain-ing four pieces of paper, each secured independently in corresponding envelopes. The envelopes were then collected and the supervisor continued reading the fol-lowing …show more content…
In other words, if the amount of your contribution is more than the level of your RC, the charity gets the total amount of your contributions; rather, the amount contributed by the supervisor to your chosen charity declines so that the total amount of con-tributions is unchanged. On the other hand, if your chosen contribution is less than the level of your RC, the amount the supervisor contributes increases. Therefore, disregarding the amount of your chosen contributions, the total amount of contribu-tion which your chosen charity gets is fixed at the established amount of

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