Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 374: Easy come, easy go - The role of windfall money in lab and field experiments

Fredrik Carlsson (), Haoran He () and Peter Martinsson ()
Additional contact information
Fredrik Carlsson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Haoran He: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Peter Martinsson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: A growing number of experimental studies focus on the differences between the lab and the field. Important in this issue is the role of windfall money. By conducting a dictator game, where the recipient is a charity organization, in exactly the same way in the laboratory and in the field, we investigate the influence of windfall and earned endowment on behavior. We find a strong effect on donation amounts of earned endowment in the lab and the field. Subjects donate more if the endowment is a windfall gain. Thus, windfall money is important not only in a lab environment. However, even for earned endowment, there is a significant difference in behavior between the lab and the field.

Keywords: Charitable giving; Dictator game; Laboratory experiment; Field experiment; Windfall money

JEL-codes: C91; C93; D64

17 pages, August 11, 2009

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