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Altruism and Social Pressure in Giving

Overview

Every year, 90 percent of Americans give money to charities. Is such generosity necessarily welfare enhancing for the giver? This paper presents a theoretical framework that distinguishes two types of motivation: individuals like to give, e.g., due to altruism or warm glow, and individuals would rather not give but dislike saying no, e.g., due to social pressure.

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