We develop a simple model of generous behavior. It is based on the premise that some people are generous, but everyone wants to appear generous--especially in the eyes of other generous people. Although non-monetary donations are always inefficient, they frequently occur in equilibrium because...

We develop a simple model of generous behavior. It is based on the premise that some people are generous, but everyone wants to appear generous—especially in the eyes of other generous people. Although non-monetary donations are always inefficient, they frequently occur in equilibrium because...