TY  - RPRT
        AU  - Fehrler, Sebastian
        TI  - Charity as a Signal of Trustworthiness
        PY  - 2010/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 5299
        UR  - https://www.iza.org/publications/dp5299
        AB  - Being perceived as trustworthy comes with substantial economic benefits in many situations. Making other people think you are a trustworthy person may, therefore, be an important motive for charity and other forms of prosocial behavior, provided these activities work as signals of trustworthiness. This paper shows that donating money to an NGO substantially raises the other players' beliefs about the donors’ trustworthiness in a simple trust game. Consequently, donors receive higher transfers. The magnitude of these benefits is substantial.
        KW  - trustworthiness
KW  - charity
KW  - signaling
KW  - trust
        ER  -