We report on an experiment using video technology to study effects of communication on donations to and discrimination between
potential receivers. The experimental design eliminates strategic factors by allowing two receivers to unilaterally communicate
with an anonymous dictator before the latter decides on her gifts. Through the use of three communication setups (none, audio,
and audio-visual) we analyze purely social effects of communication. A silent video channel leads to discrimination between
potential receivers based on impression formation, but does not affect average levels of donations. When the auditory channel
is added, average donations increase. The social processes invoked by the visual and audio channels are heterogeneous and
communicator-specific but not unsystematic.
Keywords Bargaining – Communication – Discrimination –
n-Person dictator game – Video experiment
JEL Classification C72 – C91 – D64
An earlier version of this paper had the title “Let the Dummy Talk! Unilateral Communication and Discrimination in Three-Person
Dictator Experiments”. We thank two anonymous reviewers for constructive helpful advice inspiring major revisions, and seminar
participants at Jena, Jerusalem, Erfurt, Berlin, Würzburg, and Mannheim for helpful discussions. Financial support from the
Max Planck Society is gratefully acknowledged.