Advanced Search
MyIDEAS: Login

Transaction Costs, the Opportunity Cost of Time and Inertia in Charitable Giving

Contents:

Author Info

Abstract

We conduct a laboratory experiment to analyze the effect transactions costs and inertia have on charitable giving. We conjecture that transaction costs will have a greater effect on donations if the solicitation is received when the opportunity cost of time is high. Inertia could become a factor if people intend to give, but postpone making the payment until they have more time, and having postponed making the donation once, keep doing so. We find evidence of a transaction cost effect, with the size of this effect depending on the opportunity cost of time, but no statistically significant inertia effect.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.canterbury.ac.nz/RePEc/cbt/econwp/1405.pdf
Download Restriction: no

Bibliographic Info

Paper provided by University of Canterbury, Department of Economics and Finance in its series Working Papers in Economics with number 14/05.

as in new window
Length: 44 pages
Date of creation: 01 Jan 2014
Date of revision:
Handle: RePEc:cbt:econwp:14/05

Contact details of provider:
Postal: Private Bag 4800, Christchurch, New Zealand
Phone: 64 3 369 3123 (Administrator)
Fax: 64 3 364 2635
Web page: http://www.econ.canterbury.ac.nz
More information through EDIRC

Related research

Keywords: Charitable giving; dictator game; transaction costs; opportunity cost of time; inertia;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Drew Fudenberg & David K Levine, 2005. "A Dual Self Model of Impulse Control," Levine's Working Paper Archive 618897000000000876, David K. Levine.
  2. Null, C., 2011. "Warm glow, information, and inefficient charitable giving," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 455-465, June.
  3. Douglas D. Davis, 2006. "Rebate Subsidies, Matching Subsidies and Isolation Effects," Working Papers 0604, VCU School of Business, Department of Economics.
  4. Dean Karlan & Margaret A. McConnell, 2012. "Hey Look at Me: The Effect of Giving Circles on Giving," NBER Working Papers 17737, National Bureau of Economic Research, Inc.
  5. Emre Ozdenoren & Stephen Salant & Dan Silverman, 2006. "Willpower and the Optimal Control of Visceral Urges," NBER Working Papers 12278, National Bureau of Economic Research, Inc.
  6. Peter Martinsson & Kristian Ove R. Myrseth & Conny Wollbrant, 2012. "Reconciling pro-social vs. selfish behavior: On the role of self-control," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(3), pages 304-315, May.
  7. John List & David Lucking-Reiley, 2002. "The effects of seed money and refunds on charitable giving: Experimental evidence from a university capital campaign," Natural Field Experiments 00301, The Field Experiments Website.
  8. Todd L. Cherry & Peter Frykblom & Jason F. Shogren, 2002. "Hardnose the Dictator," Working Papers 02-06, Department of Economics, Appalachian State University.
  9. Null, C., 2011. "Warm glow, information, and inefficient charitable giving," Journal of Public Economics, Elsevier, vol. 95(5), pages 455-465.
  10. Craig Landry & Andreas Lange & John List & Michael Price & Nicholas Rupp, 2006. "Toward an understanding of the economics of charity: Evidence from a field experiment," Natural Field Experiments 00292, The Field Experiments Website.
  11. Samuelson, William & Zeckhauser, Richard, 1988. " Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
  12. David Reinstein & Gerhard Riener, 2012. "Decomposing desert and tangibility effects in a charitable giving experiment," Experimental Economics, Springer, vol. 15(1), pages 229-240, March.
  13. Christopher Harris & David Laibson, 2001. "Instantaneous Gratification," NajEcon Working Paper Reviews 625018000000000267, www.najecon.org.
  14. Breman, Anna, 2011. "Give more tomorrow: Two field experiments on altruism and intertemporal choice," Journal of Public Economics, Elsevier, vol. 95(11), pages 1349-1357.
  15. Etang, Alvin & Fielding, David & Knowles, Stephen, 2012. "Giving to Africa and perceptions of poverty," Journal of Economic Psychology, Elsevier, vol. 33(4), pages 819-832.
  16. O'Donoghue, Ted & Rabin, Matthew, 1997. "Doing It Now or Later," Department of Economics, Working Paper Series qt7t44m5b0, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  17. Fong, Christina M. & Luttmer, Erzo F.P., 2011. "Do fairness and race matter in generosity? Evidence from a nationally representative charity experiment," Journal of Public Economics, Elsevier, vol. 95(5), pages 372-394.
  18. de Oliveira, Angela C.M. & Croson, Rachel T.A. & Eckel, Catherine, 2011. "The giving type: Identifying donors," Journal of Public Economics, Elsevier, vol. 95(5), pages 428-435.
  19. Eckel, Catherine C. & Grossman, Philip J., 2003. "Rebate versus matching: does how we subsidize charitable contributions matter?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 681-701, March.
  20. Huck Steffen & Rasul Imran, 2010. "Transactions Costs in Charitable Giving: Evidence from Two Field Experiments," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, April.
  21. Eckel, Catherine C. & Grossman, Philip J., 1996. "Altruism in Anonymous Dictator Games," Games and Economic Behavior, Elsevier, vol. 16(2), pages 181-191, October.
  22. Nicholas Burger & Gary Charness & John Lynham, 2010. "Field and Online Experiments on Procrastination and Willpower," Working Papers 201012, University of Hawaii at Manoa, Department of Economics.
  23. Halevy, Yoram, 2004. "Strotz meets Allais: Diminishing Impatience and the Certainty Effect," Microeconomics.ca working papers halevy-04-10-29-10-08-43, Vancouver School of Economics, revised 25 Feb 2014.
  24. Rene Bekkers, 2007. "Measuring altruistic behavior in surveys: The all-or-nothing dictator game," Artefactual Field Experiments 00102, The Field Experiments Website.
  25. Branas-Garza, Pablo, 2006. "Poverty in dictator games: Awakening solidarity," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 306-320, July.
  26. Benjamin R. Handel, 2013. "Adverse Selection and Inertia in Health Insurance Markets: When Nudging Hurts," American Economic Review, American Economic Association, vol. 103(7), pages 2643-82, December.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cbt:econwp:14/05. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Albert Yee).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.