Article ID Journal Published Year Pages File Type
5058196 Economics Letters 2016 6 Pages PDF
Abstract

•Asymmetry of information about a donor's income generates a signaling game in the presence of two-sided altruism.•Similarly, asymmetry of information regarding the donor's income generates a signaling game in the presence of two-sided altruism.•These signaling games put upward pressure on transfers and this pressure increases with the altruism of the recipient.

When donors and recipients care about each other-two-sided altruism-asymmetry of information about the donor's income or about the donor's altruism leads naturally to a signaling game. The desire to signal income or altruism puts upward pressure on transfers.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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