The Effect of Recommended Contributions in the Voluntary Provision of Public Goods

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The Effect of Recommended Contributions in the Voluntary Provision of Public Goods

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Croson, Rachel
Marks, Melanie

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Rachel Croson

Abstract

Recommended contributions are often observed in fundraising campaigns for charitable and other public goods. We present an experiment investigating the impact of recommended contributions in a voluntary threshold public goods process. We find that when valuations for the public good are heterogeneous, recommended contributions significantly increase the likelihood of efficient provision, although when valuations are homogeneous, the effect of recommendations is less compelling. This article represents a fast step in understanding recommended contributions and other nonbinding, cheap-talk announcements in public goods provision and charitable contributions. Copyright 2001 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Economic Inquiry.

Volume (Year): 39 (2001)
Issue (Month): 2 (April)
Pages: 238-49
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Handle: RePEc:oup:ecinqu:v:39:y:2001:i:2:p:238-49

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David A. Reinstein, 2006. "Does One Contribution Come at the Expense of Another? Empirical Evidence on Substitution Between Charitable Donations," Economics Discussion Papers 618, University of Essex, Department of Economics. [Downloadable!]
Alexis Belianin & Marco Novarese, 2005. "Trust, communication and equlibrium behaviour in public goods," Experimental 0506001, EconWPA. [Downloadable!]
Charles Cadsby & Rachel Croson & Melanie Marks & Elizabeth Maynes, 2008. "Step return versus net reward in the voluntary provision of a threshold public good: An adversarial collaboration," Public Choice, Springer, vol. 135(3), pages 277-289, June. [Downloadable!] (restricted)
Rachel Croson & Melanie Marks, 2000. "Step Returns in Threshold Public Goods: A Meta- and Experimental Analysis," Experimental Economics, Springer, vol. 2(3), pages 239-259, March. [Downloadable!] (restricted)
Richard McAdams & Janice Nadler, . "A Third Model of Legal Compliance: Testing for Expressive Effects in a Hawk/Dove Game," Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy Working Paper Series yale_lepp-1029, Yale Law School John M. Olin Center for Studies in Law, Economics, and Public Policy. [Downloadable!]

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