PUB - Publikationen an der Universität Bielefeld

We use a revealed preference approach to develop tests for the observed behavior to be consistent with theories of social preferences. In particular, we provide nonparametric criteria for the observed set of choices to be generated by inequality averse preferences and increasing benevolence preferences. These tests can be applied to games commonly used to study social preferences: dictator, ultimatum, investment (trust) and carrot-stick games. We further apply these tests to experimental data on dictator and ultimatum games. Finally, we show how to identify the levels of altruism and fair outcomes using the developed revealed preference conditions.