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We present a laboratory experiment that measures the effects of induced group identity on social preferences. We find that when participants are matched with an ingroup member, they show a 47 percent increase in charity concerns and a 93 percent decrease in envy. Likewise, participants are 19 percent more likely to reward an ingroup match for good behavior, but 13 percent less likely to punish an ingroup match for misbehavior. Furthermore, participants are significantly more likely to choose social-welfare-maximizing actions when matched with an ingroup member. All results are consistent with the hypothesis that participants are more altruistic toward an ingroup match. (JEL C91, D03, Z13)

In the United States, there is widespread antipathy toward taxation, yet at the same time there are substantial voluntary donations to nonprofit organizations with missions that are parallel to those of many government agencies. In this paper we compare giving in the form of voluntary taxes paid to government agencies with giving in the form of voluntary donations to nonprofit organizations that have similar missions. In a laboratory experimental setting, subjects are given an endowment, and are given the opportunity to donate any part of the endowment to a government agency or to a nonprofit organization. We compare levels of giving to private and government organizations for four different causes (cancer research, disaster relief, education, and parks and wildlife) at three levels of government (federal, state and local). Within a session, subjects make 12 decisions: they complete all six separate decisions for each of two causes, selected randomly from the four listed above. We find that people are not averse to giving to government. On average, they give 22 percent of their budget to government when anonymity is ensured and giving is completely voluntary. However, they do show a preference for nonprofit charities by giving higher amounts for most causes and levels of government. The willingness to give is influenced by the cause and level of the organization, as well as perceptions of the organization.

We design a field experiment to explore the use of social comparison to increase contributions to an online community. We find that, after receiving behavioral information about the median user's total number of movie ratings, users below the median demonstrate a 530 percent increase in the number of monthly movie ratings, while those above the median decrease their ratings by 62 percent. When given outcome information about the average user's net benefit score, above-average users mainly engage in activities that help others. Our findings suggest that effective personalized social information can increase the level of public goods provision. (JEL C93, H41, L82)