Altruism is one of the central features that distinguishes the family from other institutions in society. More altruistic parents are likely to spend more resources on their children, which, in turn, should have a positive impact on child well-being. Altruism between siblings may affect family interactions during childhood and the degree of extended family support during adulthood. Although there is widespread agreement about the importance of altruism in families, it is difficult to observe the resource allocations that result from family decisions, and measures of altruism have been, at best, indirect. In this application the investigators use experimental economics methods to allow us to observe family allocation decisions under controlled conditions. Because altruistic preferences are central to these decisions, the investigators deviate from the standard practice of recruiting student subjects, and, instead, use real families recruited from the local area. In addition, socio-biology suggests that altruism is linked to the degree of genetic relatedness, so the investigators have contacted two national twins organizations to recruit families that contain twins. This recruitment strategy allows them to compare altruism between subjects with different degrees of genetic and social relatedness. In this proposal the investigators outline two types of experiments. The first set of experiments (Parental Transfers to Children) investigates transfers made for investment purposes versus compensatory transfers, and examines the differences in parental transfers across siblings. The second set of experiments (Intrafamily Altrutsm) uses dictator games to reveal altruistic preferences among family members and examines how transfers differ by the price of transfers, the endowment of the recipient, and the degree of social and genetic relatedness. Another goal of the dictator experiments is to help design and calibrate a survey instrument that could measure altruistic preferences across individuals. This goal involves giving subjects a hypothetical questionnaire that closely mirrors the experimental setup (i.e. prices, endowments, and degree of genetic and social relatedness are specified). If the within-subject hypothetical and actual behaviors are similar, the investigators may be able to justify using hypothetical questionnaires in large scale surveys to measure altruistic preferences. The investigators will also compare our measures with scales that have been developed by psychologists to assess parenting behavior, empathy, and other pro-social attitudes and behaviors.
