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Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment

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Author Info
Craig E. Landry (East Carolina University)
Andreas Lange (University of Maryland)
John A. List (University of Chicago and NBER)
Michael K. Price (University of Nevada-Reno)
Nicholas G. Rupp (East Carolina University)

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Abstract

This study develops theory and uses a door-to-door fund-raising field experiment to explore the economics of charity. We approached nearly 5000 households, randomly divided into four experimental treatments, to shed light on key issues on the demand side of charitable fund-raising. Empirical results are in line with our theory: in gross terms, the lotteries raised more money than the voluntary contributions treatments. Interestingly, in terms of both maximizing current contributions and inducing participation, we find that a one-standard deviation increase in female solicitor physical attractiveness is similar to that of the lottery incentive. Copyright (c) 2006 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology..

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Article provided by MIT Press in its journal Quarterly Journal of Economics.

Volume (Year): 121 (2006)
Issue (Month): 2 (May)
Pages: 747-782
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Handle: RePEc:tpr:qjecon:v:121:y:2006:i:2:p:747-782

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  7. Matthew Rabin., 2000. "Risk Aversion and Expected-Utility Theory: A Calibration Theorem," Economics Working Papers E00-279, University of California at Berkeley. [Downloadable!]
  8. Vesterlund, Lise, 2003. "The informational value of sequential fundraising," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 627-657, March. [Downloadable!] (restricted)
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  10. Andreas Lange & John A. List & Michael K. Price, 2007. "Using Lotteries To Finance Public Goods: Theory And Experimental Evidence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 901-927, 08. [Downloadable!] (restricted)
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  15. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December. [Downloadable!] (restricted)
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  20. Edward L. Glaeser & David I. Laibson & José A. Scheinkman & Christine L. Soutter, 2000. "Measuring Trust," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 811-846, August. [Downloadable!] (restricted)
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  22. Fraser, Cynthia & Hite, Robert E & Sauer, Paul L, 1988. " Increasing Contributions in Solicitation Campaigns: The Use of Large and Small Anchorpoints," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 15(2), pages 284-87, September.
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