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Repeated Charitable Contributions under Incomplete Information

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  • ParimalKanti Bag
  • Santanu Roy

Abstract

Incomplete information about (independent) private valuations of charities by potential donors provides an important strategic rationale for announcement of donations during fundraising drives and explains why donors may add to their initial contributions after learning about contributions made by others. In a two-stage fundraising drive where potential donors may contribute at either or both stages, it is shown that under certain conditions, announcement of contributions generates higher expected total contribution. Contribution announcement plays a similar positive role even when the charity acquires information about donor valuations prior to actual fundraising and can take actions to mitigate incomplete information among donors. Copyright 2008 The Author(s). Journal compilation Royal Economic Society 2008.

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Bibliographic Info

Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 118 (2008)
Issue (Month): 525 (01)
Pages: 60-91

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Handle: RePEc:ecj:econjl:v:118:y:2008:i:525:p:60-91

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Cited by:
  1. Parimal Bag & Santanu Roy, 2008. "On Sequential and Simultaneous Contributions under Incomplete Information," Departmental Working Papers 0805, Southern Methodist University, Department of Economics, revised Nov 2008.

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