Are They Watching You and Does It Matter? - Evidence from a Natural Field Experiment

Abstract

In a natural field experiment, we tested whether being alone or in a group had an effect on prosocial behavior as expressed in donations to a recreational park. We also explored whether the presence of people exogenous to the group at the time of the donation had any behavioral effect. Our first treatment aimed at identifying peer effects, whereas our second treatment was similar to being in the public eye. We found that being in a group significantly increases the share of people acting prosocially. Moreover, we found that only individuals who are part of a group are positively affected by the presence of a third party.