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In the Solidarity Game (Selten and Ockenfels, 1998), two "rich" persons can support a "poor" one. A strong positive correlation between one rich person's solidarity contribution and his expected contribution of the other is observed. This paper investigates the causality behind this correlation....
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For many people "solidarity" has become a meaningless word used in slogans - too often used without leading to any economic consequences. We show in this paper conditions under which solidarity can be a powerful instrument. In a solidary action, an individual in a group contributes to a series...
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Most incomes underlie some risk, i.e. ex ante they can be regarded as a lottery ticket. In every society, the lucky winners of this lottery compensate unlucky losers (unemployed workers or bankrupt entrepreneurs) privately and/or by public insurances. Do voluntary solidarity payments depend on...
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In the Solidarity Game (Selten and Ockenfels, 1998) lucky winners of a lottery can transfer part of their income to unlucky losers. Will losers get smaller transfers if they can be assumed to be (partly) responsible for their zero income because they have chosen riskier lotteries (Trhal and...
Persistent link: https://www.econbiz.de/10009406716
In the Solidarity game lucky winners of a lottery can transfer part of their income to unlucky losers. Will losers get smaller transfers if they can be assumed to be responsible for their zero income because they have chosen riskier lotteries? Or will risk-lovers and riskaverters favor those who...
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