The demand for products linked to public goods: Evidence from an online field experiment
We conduct a field experiment at a nonprofit organization's online store to study how demand changes when consumers' purchases can generate revenue for a charitable cause. When purchases can trigger a small donation by an outside anonymous group, consumers respond strongly and apparently without regard for the specific conditions that trigger the donation. Consumers respond similarly when the outside donation requires a personal donation which consumers generally decline. When the outside donations are relatively large, however, consumers appear to pay close attention to the trigger conditions, and increase their purchases only where needed to generate the outside donation. Overall, increasing the salience of financial incentives weakens consumers' positive responses to the outside group's donation pledges. We also present evidence that the donation pledges have positive long-term effects on demand and may reduce price sensitivity.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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.:
- Dean Karlan & John A. List, 2006.
"Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment,"
1, The Field Experiments Website.
- Dean Karlan & John A. List, 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," American Economic Review, American Economic Association, vol. 97(5), pages 1774-1793, December.
- Dean Karlan & John List, 2006. "Does price matter in charitable giving? Evidence from a large-scale natural field experiment," Natural Field Experiments 00279, The Field Experiments Website.
- Dean Karlan & John A. List, 2006. "Does Price Matter in Charitable Giving? Evidence From a Large-Scale Natural Field Experiment," NBER Working Papers 12338, National Bureau of Economic Research, Inc.
- Karlan, Dean & List, John, 2006. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," Working Papers 13, Yale University, Department of Economics.
- Daniel W. Elfenbein & Brian McManus, 2010. "A Greater Price for a Greater Good? Evidence That Consumers Pay More for Charity-Linked Products," American Economic Journal: Economic Policy, American Economic Association, vol. 2(2), pages 28-60, May.
- Chen Yan & Li Xin & MacKie-Mason Jeffrey K, 2005.
"Online Fund-Raising Mechanisms: A Field Experiment,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 5(2), pages 1-39, December.
- Jeffrey MacKie-Mason & Xin Li & Yan Chen, 2006. "Online fund-raising mechanisms: A field experiment," Natural Field Experiments 00225, The Field Experiments Website.
- Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
- Stephan Meier, 2007.
"Do Subsidies Increase Charitable Giving in the Long Run? Matching Donations in a Field Experiment,"
Journal of the European Economic Association,
MIT Press, vol. 5(6), pages 1203-1222, December.
- Stephan Meier, 2006. "Do subsidies increase charitable giving in the long run?: matching donations in a field experiment," Working Papers 06-18, Federal Reserve Bank of Boston.
- 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.
- Peter T. L. Popkowski Leszczyc & Michael H. Rothkopf (deceased), 2010. "Charitable Motives and Bidding in Charity Auctions," Management Science, INFORMS, vol. 56(3), pages 399-413, March.
- Strahilevitz, Michal & Myers, John G, 1998. " Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You Are Trying to Sell," Journal of Consumer Research, Oxford University Press, vol. 24(4), pages 434-46, March.
- Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough or Don't Pay at All," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 791-810.
When requesting a correction, please mention this item's handle: RePEc:eee:pubeco:v:95:y:2011:i:5:p:403-415. 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: (Shamier, Wendy)
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.