This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Journal: Microeconomics
  4. February 2010
  5. The 1/d Law of Giving

The 1/d Law of Giving

  • Jacob K. Goeree
  • Margaret A. McConnell
  • Tiffany Mitchell
  • Tracey Tromp
  • Leeat Yariv
American Economic Journal: Microeconomics
vol. 2, no. 1, February 2010
(pp. 183-203)
Download Full Text PDF

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 themselves. 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. (JEL D44, H82)

Citation

Goeree, Jacob K., Margaret A. McConnell, Tiffany Mitchell, Tracey Tromp, and Leeat Yariv. 2010. "The 1/d Law of Giving." American Economic Journal: Microeconomics, 2 (1): 183-203. DOI: 10.1257/mic.2.1.183

Additional Materials

JEL Classification

  • D44 Auctions
  • H82 Governmental Property
There are no comments for this article.
Login to Comment