Glazer, Amihai; Kondo, Hiroki - Department of Economics, University of California-Irvine - 2012
An altruistic agent who may aid a person with a low income may induce that person to exert little effort to increase his income. Such behavior generates a Good Samaritan Dilemma, in which welfare is lower than when no one is altruistic. Governmental transfers, which restrict reallocation from a...