TY - JOUR AU - Ritov, Ilana AB - Introduction In modern welfare states, wealth is typically redistributed from the better off to those with less income. This may occur through various means such as progressive income tax levels or tax-based social benefits. The proportions and thereby the amounts transferred within a society are determined by legislation within a given period. Another means often used by welfare states for redistribution of resources is running charity lotteries. Charity lotteries such as the Deutsche Fernsehlotterie and Aktion Mensch in Germany, Mifal HaPais in Israel, or The National Lottery Community Fund in the UK raise money by selling lottery tickets to the public to fund their social programs and support people in need. To incentivize donors, a small proportion of the lottery revenue is distributed to them in form of monetary or other prizes. Furthermore, to invite more people to participate in these lotteries, they are often advertised by showing individuals or groups who benefit from specific programs. Even when tax-payers tend to complain about giving up too much of their own money for the welfare system, they often are generous when it comes to freely donating money to people in need. Donations may come in different ways, for instance, by sending money directly to a charity or by joining a state or charity lottery. For the former, there is no monetary return for the donor, whereas, for the latter, there is a chance to win a prize. But do people who buy charity lottery tickets think of their purchase as making a donation, or do they simply see it as an opportunity to gamble in order to potentially increase their own wealth? To the extent that charity lottery is perceived differently from a plain lottery, peoples’ preferences among gambles may depend on factors that typically affect charitable giving. The main goal of the present study is to investigate various factors that may influence the amount of resources people are willing to invest in charity lottery-like gambles. To this end, we propose a new game, called ‘need game’, which is a modification of the dictator game [1] and includes a lottery (Note, that a real charity lottery obviously differs in many aspects from an experimental lottery in the lab as outlined later, and we use the example mainly for motivational reasons. However, the experimental paradigm shares some similarities with charity lotteries: 1) the involvement of needy recipients; 2) donors join a rsiky gamble; 3) donors can choose how much they are willing to invest; 4) recipients may receive a portion of the money invested by donors, and 5) recipients take a passive role, i.e. they are not able to influence the outcome of the lottery). In particular, we are interested in whether 1) a defined need for both the donor and the recipient and 2) the description of the recipient in need affects the amount invested. To compare the study to previous research, we also investigate the influence of 3) the probability of winning the lottery; 4) the framing of the lottery; and 5) different time limits for making a choice on choice behavior. We start by describing some of these concepts and then state our specific hypotheses. Need has been defined as an objective lack of resources that are necessary to maintain physiological and mental health, as an actual or felt state of deprivation, or as the incapability to partake in the commonly accepted activities of the community (for an interdisciplinary perspective on needs and need-based justice see the contributions in the edited volume by Kittel & Traub [2]). Irrespective of its theoretical conception, need seems to serve as an important reference point for allocating resources. For instance, in a questionnaire experiment, Schwinger & Lamm [3] and Lamm & Schwinger [4] showed that participants allocated a significantly higher share of money to more needy persons even if they were responsible for their higher need. Here, we assume that both, the donor and the recipient have needs—expressed in terms of a minimum amount of points—that is required for living. At the beginning of the experiments, the donor has some endowment worth more than the minimum need. The recipient has no endowment but her/his minimum need can be reached through the donor’s repeated actions. The standard dictator game consists of two players: an active player (the dictator), who determines how to split an endowment between her/himself and a second, passive player, who has no influence on the outcome of the game. Numerous dictator game experiments have been conducted. Overall, generosity seems to be large, i.e. more than 50% of the dictators are willing to share their endowment (see e.g. [5]). Conducting a meta-analysis with 131 studies and 616 treatments, Engel [6] found that, for instance, deserving recipients get more and identified dictators are more generous. For our purpose, we modify the standard dictator game in several ways. First, we define a minimum need level for both, dictators, here we keep calling the person donor, and recipients. The minimum need level of the recipient can be reached only by repeated actions of the donor, and therefore, the game must run for several rounds with the same participant. Second, the game is embedded into a lottery to produce risky-choice. That is, the donor decides on how many points to invest in (share with) the recipient (similar to how many lottery tickets are bought), however, the recipients will get them only with a predefined probability (similar to the donor’s lost bet). We will describe the game, which is called ‘need game’, in detail in the method section. To the extent that people think of buying charity lottery tickets as donation, the characteristics of the recipient should affect their decisions. In particular, the identifiability of the recipient is expected to make a difference. In his economic analysis on the value of life, Schelling [7] distinguished from the beginning between identified and statistical lives. His hypothesis that people react differently to identified and statistical lives has been supported by several experiments (e.g. [8–12]). The effect is nowadays called “Identifiable Others Effect” [13] (in the following abbreviated as IOE) of which the “Identifiable Victim Effect” is a special case, and it describes the tendency of being more generous to identified victims/person as compared to unidentified or statistical victims/person. In the context of the dictator game, Hoffman et al. [14] found that variations in the level of the recipient’s anonymity caused large and significant changes in the dictator’s generosity. Similarly, creating conditions of privacy and anonymity by putting the recipient in the same or a different room (or even in different cities) showed significant effects [15, 16]. Brañas-Garza [17] found that describing the recipient as poor increased the amount the dictator was willing to give away. Showing pictures of the recipient [18] or giving them a name [19] had a similar effect. Ritov & Kogut [20] investigated altruistic behavior with dictator games where the recipient was either identified i.e., personal characteristics were revealed or not identified (no information). Their results suggest, however, that the tendency to be more well-disposed towards identified than to unidentified recipients seems to be influenced by additional factors (e.g. intergroup bias). Small & Loewenstein [21] changed the identified person from victim to perpetrator and investigated the willingness to punish uncooperative behavior in a social dilemma. Participants were more punitive toward identified perpetrators than to unidentified ones. That is, being more benevolent to identified victims and more malevolent to identified perpetrators suggests that the IOE depends also on the role of the person. In the current study, the identified/unidentified recipient is furthermore described as a person with or without need. This additional information may tip the IOE in one or the other direction: A person in need might be perceived as a victim, whereas a person without need might be seen as a person receiving resources for no apparent reason. Frames—different but objectively equivalent descriptions of the same problem—affect choice behavior [22]. In the context of the dictator game, frames include, for instance, buying and selling commodities or handling coins and notes (see Engel [6] for a review). In the current paradigm amounts handed over to the recipients occur with a probability, presented as a lottery and framed either as a gain or a loss (Fig 1). The framing resembles an attribute framing [23], and we assume that in a positive frame (win) higher amounts are invested as compared to a negative frame (loss). Download: PPT PowerPoint slide PNG larger image TIFF original image Fig 1. Screenshots of the display. Need game embedded in a lottery frame either as gain (left) or as loss (right). The probability of winning/losing the bet is presented in a pie chart. In a gain trial, the probability of winning is marked in green and the probability of losing in gray. In a loss trial, the probability of winning is marked in gray and the probability of losing in red. Below the pie charts are the number of points displayed from which the donor can bet on: 1, 10, or 50 points. L, C, and R in front of the bets refer to the keys the participant needs to press to indicate her/his choice. The third row in the display shows the current endowment and need of the donor (“you”) and that of the recipient (“Other person”). The last row indicates the remaining time allotted to a given trial. https://doi.org/10.1371/journal.pone.0234336.g001 The size of a framing effect seems to depend on several additional factors. For instance, in a risky gamble framing, the probability of winning/losing an amount; the magnitude of the amount itself; or specific problem domains may account for some differences observed for the effect but also design-related issues such as between-subject versus within-subject design [23–27]. Here, we include the probabilities to win the lottery as moderators [28, 29]. Furthermore, frames may have a moderating effect on need. In their study, Diederich et al. [30] induced need in terms of a minimum requirement of points a person has to meet during a series of games. Their results show that participants became more risk-taking in gain frames with increasing induced need. Mishra et al. [31] found that people who have a debt (need) that can only be settled by taking higher risks tend to show stronger framing effects than people without debt. Mishra & Fiddick [32] and Diederich et al. [29] introduced need into the Asian Disease paradigm [22]. Mishra & Fiddick defined need as a minimum number of lives the decision-maker must hypothetically save, or prevent from dying, respectively. They found that need eliminates the framing-effect. Diederich et al. investigated need, defined as the number of people who were affected by a certain disease, i.e., in need of a treatment, with various diseases (unusual disease, leukemia, AIDS). They found that when need was high, i.e., a large number of people were affected, participants became more risk-averse, and more framing-effects occurred when more people were affected by a disease. Note that the size of this moderation effect depended on the kind of disease. Depth of processing, influenced by individual differences as well as time constraints may also affect the size of the framing effect [29, 33]. Diederich et al. and Guo et al. [29, 33] found that shorter declines enhanced the framing effect. While time constraints have shown an impact on preferential choice (frequencies) [34–36] it seems not to have a significant influence on the amount given in dictator games (for reviews see [37] and [38]). This will be probed here further. Based on this, we hypothesize that the amount of her/his resources the donor is willing to invest in the need game depends on various factors. 1) Need: The donor is willing to invest larger amounts for a recipient in need as compared to a person without need. 2) Identifiability of the recipient: The more information about the recipient is available (i.e. identified) the higher is the amount the donor is willing to invest. 3) Need moderates the IOE: The effect is stronger for a recipient in need. 4) Framing of the lottery: We expect that higher amounts are invested in a gain frame than in a loss frame. 5) Probabilities: The higher (lower) the probability to win (lose) the lottery is the higher are the amounts invested. 6) Time Pressure: We hypothesize that time pressure moderates the framing effect, that is, stronger framing effects under the shorter time limit. 7) We further expect framing to moderate the effects of Need (7a) and Identifiability (7b). Materials and methods We start by describing the experiments’ overall setup, evaluation methods and, in particular, the need game’s general features. Need game The need game is a modified dictator game, which includes two players, an active participant, that is, the donor, and a passive player, that is, the recipient. The donor initially owns some endowment, KD, and the recipient typically has no endowment, KR = 0. In the standard dictator game, the dictator decides how to split the endowment between her/himself and the recipient, who has no influence on the outcome of the game. That is, the dictator determines the portion of the endowment shared with the recipient, and the recipient receives that portion. The newly created need game differs in several ways from the standard game. First, the dictator/donor is not free of sharing any portion of the endowment with the recipient but may choose from predetermined amounts only: x1, …, xn. Second, the selected amount xi is not simply handed over to the recipient but depends on the outcome of a lottery. That is, xi is a bet in a lottery with probability p for the donor to win the bet and probability 1 − p for the donor to lose it. The rule of the game is as follows: The recipient receives the amount xi if the donor loses the bet. In this case, the amount lost is subtracted from the donor’s endowment (i.e. KD − xi) and added to the recipient’s account (i.e. KR + xi). If, however, the donor wins the bet, xi is added to the donor’s endowment (i.e. KD + xi), and the recipient obtains nothing. Third, both players require a minimum need at the end of the game, ND and NR, expressed in the same currency as the endowment, that they must maintain (the donor) or obtain (the recipient) by playing several rounds of the game. That is, typically at the onset of the game KD > ND and KR < NR and after t rounds, must not ND and KR < NR and after t rounds, must not