Self-serving bias across strategic and non-strategic dictator games with production

This paper investigates behaviour across strategic and non-strategic dictator games with a preceding production phase. In both treatments subjects remain paired and play a trust game immediately following the dictator game. In the strategic condition subjects are informed about the subsequent trust game, while in the non-strategic condition they are not. Dictators in our non-strategic condition display a self-serving bias. On the other hand, dictators in our strategic condition are more generous and display no self-serving bias. Despite the increased generosity, transfers and earnings in the trust game are lower in the strategic condition. Results suggest that generosity, perceived as having a strategic motivation, can undermine trust.