Browsing by Author "Cabaero, Carlos C."

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    Identifying the relationship between altruism and generosity with the bandwagon effect
    (2018-04-23) Po, Aina Bernice U.; Cabaero, Carlos C. ; Capuno, Joseph J.
    The purpose of the paper is to see whether bandwagon effect contributes to a higher sense of altruism. Eighty students from the UP School of Economics were recruited to participate in a classroom experiment. The participants were first asked to answer a questionnaire detailing their socioeconomic and psychological characteristics. Then they were randomly assigned into two groups to play modified dictator games where an average contribution was announced to one of the groups to induce a bandwagon effect. The control group played four games with five rounds each, with Game 1 and 3 played where each player was given and initial endowment of ₱200.00 and Game 2 and 4 being played with individual endowments of ₱300.00. The treatment group was asked to play a similar setup, with the exception that an announcement of the average contributions of the group were given before Games 3 and 4, respectively. The increase in allocations from Games 1 to 3 and Games 2 to 4 were recorded for both test groups. Test of means between the increased allocations of each group showed that all significant differences revealed the treatment group was more generous than the control group, highlighting the possibility of a bandwagon effect. Ordinary Least Squares linear regression analysis was carried out using a model that showed the relationship of the amount allocated with the bandwagon effect, alongside key socioeconomic and psychological variables. The results show that the bandwagon effect is insignificant in influencing allocations. Instead, various socioeconomic and psychological variables, like amount of personal interactions stress in social media and school, as well as personal and familial levels of disposable income have more significant effects on an individual’s altruism and generosity.