The last will: Estate divisions as a testament of to whom altruism is directed.

Oscar Erixson,Per Engström,Mikael Elinder

doi:10.1371/journal.pone.0254492

Oscar Erixson, Per Engström + Show 1 more

Open Access

https://doi.org/10.1371/journal.pone.0254492

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Abstract

We use data on estate divisions to study to whom altruistic preferences are directed. Insofar bequests are given without the prospect of future personal benefits in mind, they are presumably intrinsically motivated. Hence, estate divisions provide a rare opportunity to study intrinsically motivated prosocial behavior in the field. The empirical analysis is based on data from digitized estate reports for all individuals in Sweden who passed away in 2002 and 2003. The data show in detail how the decedents distributed their bequests. We find that family members, both genetic (offspring) and non-genetic (partner), receive the lion’s share of the estates. Other relatives, friends and strangers (represented by charities) receive only very small shares of the total estate wealth. The results suggest that intrinsically motivated altruism is primarily directed towards close family members.

Highlights

Humans frequently engage in prosocial behavior by helping family members, friends and strangers or by contributing to charitable causes
Our main hypothesis states that close family members receive more than other relatives, who, in turn, receive more than non-relatives, who receive more than charities
These results are consistent with our main hypothesis that altruism is stronger towards one’s close family compared to the other groups and that altruism towards relatives is stronger than that towards friends and strangers, represented by non-relatives and charities

Summary

Introduction

Humans frequently engage in prosocial behavior by helping family members, friends and strangers or by contributing to charitable causes. We analyze to whom altruistic preferences are directed by studying exceptionally rich data on how decedents chose to distribute their estate wealth between different groups of heirs (e.g., children, relatives, friends and charities). There are almost no real-life situations, outside the lab, where the possibility of reputational motives for prosocial behavior can confidently be ruled out. Estate divisions provide a rare real-life situation in which the influence of reputational motives is minimized and intrinsic motives for prosocial behavior can be studied. In the model presented by Benabou and Tirole [1], motives for prosocial behavior are classified into three broad groups: intrinsic, extrinsic and reputational. This framework encompasses several important theories on altruism and prosocial behavior.

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