Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/51962
Authors: 
Fehrler, Sebastian
Year of Publication: 
2010
Series/Report no.: 
Discussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5299
Abstract: 
Being perceived as trustworthy comes with substantial economic benefits in many situations. Making other people think you are a trustworthy person may, therefore, be an important motive for charity and other forms of prosocial behavior, provided these activities work as signals of trustworthiness. This paper shows that donating money to an NGO substantially raises the other players' beliefs about the donors' trustworthiness in a simple trust game. Consequently, donors receive higher transfers. The magnitude of these benefits is substantial.
Subjects: 
charity
signaling
trust
trustworthiness
JEL: 
C72
C92
H41
Document Type: 
Working Paper

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