Replication Data for: Making Up for Harming Others - An Experiment on Voluntary Compensation Behavior

In one treatment dimension, we vary whether the externality associated with a purchase is irreversible, or can be reduced ex post by a voluntary payment. In a second treatment dimension, we induce diffusion of harm among harmed subjects and diffusion of responsibility among buyers by separately varying the matching of buyers and harmed subjects.

We find that subjects are on average willing to compensate for their negative externalities, and that this willingness is sensitive to the surplus from buying. Yet, experimental buyers are highly heterogeneous, with some never compensating. While the introduction of voluntary compensation significantly reduces externalities, the net externality still remains high across all treatments.