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Masked Heroes: endogenous anonymity in charitable giving

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  • Mike Peacey
  • Michael Sanders

Abstract

Previous work on anonymous donations has looked almost exclusively at exogenous anonymity. This study considers endogenous anonymity, approaching it from two angles. We present stylised facts of anonymous giving, drawn from a large dataset of donations on behalf of runners in the London Marathon. We find not only that are anonymous donations likely to be larger than public ones, but that those who follow an anonymous donation donate around 4% more than had the same preceding donation been public. Our main contribution is to explain this phenomenon through a signalling model, where foregoing prestige through anonymity signals the charity's quality.

Suggested Citation

  • Mike Peacey & Michael Sanders, 2014. "Masked Heroes: endogenous anonymity in charitable giving," The Centre for Market and Public Organisation 14/329, The Centre for Market and Public Organisation, University of Bristol, UK.
    • Handle: RePEc:bri:cmpowp:14/329
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    File URL: http://www.bristol.ac.uk/cmpo/publications/papers/2014/wp329.pdf
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    Cited by:

    1. Gordon Burtch & Anindya Ghose & Sunil Wattal, 2016. "Secret Admirers: An Empirical Examination of Information Hiding and Contribution Dynamics in Online Crowdfunding," Information Systems Research, INFORMS, vol. 27(3), pages 478-496, September.
    2. Daniel Jones & Sera Linardi, 2014. "Wallflowers: Experimental Evidence of an Aversion to Standing Out," Management Science, INFORMS, vol. 60(7), pages 1757-1771, July.
    3. Scharf, Kimberley & Smith, Sarah, 2014. "Relational Warm Glow and Giving in Social Groups," CEPR Discussion Papers 10051, C.E.P.R. Discussion Papers.
    4. repec:bri:cmpowp:13/327 is not listed on IDEAS
    5. Yang Jiang & Yi-Chun (Chad) Ho & Xiangbin Yan & Yong Tan, 2022. "What’s in a “Username”? The Effect of Perceived Anonymity on Herding in Crowdfunding," Information Systems Research, INFORMS, vol. 33(1), pages 1-17, March.

    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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