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Inter-charity competition under spatial differentiation: Sorting, crowding, and spillovers

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  • Gallier, Carlo
  • Goeschl, Timo
  • Kesternich, Martin
  • Lohse, Johannes
  • Reif, Christiane
  • Römer, Daniel

Abstract

We study spatially differentiated competition between charities in a framed field experiment. We introduce spatial differentiation by varying the observability of charities’ location such that each donor faces a socially close ‘home’ and a socially distant ‘away’ charity. In our field setting, we observe spatially differentiated competition between charities offering the same good to be characterized by sorting, crowding-in, and an absence of spill-overs: Donors sort themselves by distance; fundraising (through matching) for one charity raises checkbook giving to that charity, irrespective of spatial distance; but checkbook giving to the unmatched charity is not affected.

Suggested Citation

  • Gallier, Carlo & Goeschl, Timo & Kesternich, Martin & Lohse, Johannes & Reif, Christiane & Römer, Daniel, 2023. "Inter-charity competition under spatial differentiation: Sorting, crowding, and spillovers," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 457-468.
    • Handle: RePEc:eee:jeborg:v:216:y:2023:i:c:p:457-468
    DOI: 10.1016/j.jebo.2023.10.013
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    4. Adena, Maja & Hager, Anselm, 2020. "Does online fundraising increase charitable giving? A nation-wide field experiment on Facebook," Discussion Papers, Research Unit: Economics of Change SP II 2020-302, WZB Berlin Social Science Center.

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    More about this item

    Keywords

    Altruism; Public goods; Charitable giving; Social distance; Framed field experiment; Competition;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H4 - Public Economics - - Publicly Provided Goods

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