Will There Be Blood? Incentives and Displacement Effects in Pro-social Behavior
AbstractWe present evidence from nearly 14,000 American Red Cross blood drives and from a natural field experiment showing that economic incentives have a positive effect on blood donations without increasing the fraction of donors who are ineligible to donate. The effect increases with the incentive's economic value. However, a substantial proportion of the increase in donations is explained by donors leaving neighboring drives without incentives to attend drives with incentives; this displacement also increases with the economic value of the incentive. We conclude that extrinsic incentives stimulate prosocial behavior, but unless displacement effects are considered, the effect may be overestimated. (JEL D64, H41, I12)
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Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Journal: Economic Policy.
Volume (Year): 4 (2012)
Issue (Month): 1 (February)
Find related papers by JEL classification:
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- I12 - Health, Education, and Welfare - - Health - - - Health Production
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- Erte Xiao & Daniel Houser, 2014. "Sign Me Up! A Model and Field Experiment on Volunteering," Working Papers 1043, George Mason University, Interdisciplinary Center for Economic Science.
- Christine Exley, 2013. "Incentives for Prosocial Behavior: The Role of Reputations," Discussion Papers 12-022, Stanford Institute for Economic Policy Research.
- Julian Conrads & Bernd Irlenbusch & Tommaso Reggiani & Rainer Michael Rilke & Dirk Sliwka, 2013. "How to Hire Helpers? Evidence From a Field Experiment," Cologne Graduate School Working Paper Series 04-03, Cologne Graduate School in Management, Economics and Social Sciences.
- Nava Ashraf & Oriana Bandiera & Kelsey Jack, 2012. "No Margin, no Mission? A Field Experiment on Incentives for public service delivery," STICERD - Economic Organisation and Public Policy Discussion Papers Series 035, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
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