Peer effects in charitable giving: Evidence from the (running) field Abstract: There is a widespread belief that peer effects are important in charitable giving, but surprisingly little evidence on how donors respond to their peers in practice. Analysing a unique dataset of donations to online fundraising pages, we show that peer effects are positive and sizeable: a £10 increase in the mean of past donations increases giving by £2.50, on average. We show that donations respond to large and small donations and to changes in the mode. We find little evidence that donations signal charity quality – our preferred explanation is that donors use information on (the distribution of) earlier donations to decide what is appropriate for them to give. Length: 44 pages
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Bibliographic InfoPaper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 13/302.
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- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
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- Warr, Peter G., 1982. "Pareto optimal redistribution and private charity," Journal of Public Economics, Elsevier, Elsevier, vol. 19(1), pages 131-138, October.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, Econometric Society, vol. 49(6), pages 1417-26, November.
- Naroditskiy, Victor & Stein, Sebastian & Tonin, Mirco & Tran-Thanh, Long & Vlassopoulos, Michael & Jennings, Nicholas R., 2014. "Referral Incentives in Crowdfunding," IZA Discussion Papers 7995, Institute for the Study of Labor (IZA).
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