IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v70y2024i4p2272-2293.html
   My bibliography  Save this article

Avoiding Peer Information and Its Effects on Charity Crowdfunding: A Field Experiment

Author

Listed:
  • Tat Y. Chan

    (Olin Business School, Washington University, St. Louis, Missouri 63117)

  • Li Liao

    (People’s Bank of China School of Finance (PBCSF), Tsinghua University, Beijing 100083, China)

  • Xiumin Martin

    (Olin Business School, Washington University, St. Louis, Missouri 63117)

  • Zhengwei Wang

    (People’s Bank of China School of Finance (PBCSF), Tsinghua University, Beijing 100083, China)

Abstract

We study the behavior of an individual avoiding peer information from a natural field experiment of charity crowdfunding. The unique experimental design enables us to employ an instrumental variable strategy to identify how the behavior influences individual giving to and promotion of charity campaigns. We find that, even with free access, 89% of individuals chose not to seek peer information. These individuals were less likely, whereas their peers were more likely to give and help promote in the past. The behavior would reduce the total distribution of campaigns by 8.5% and the total donation amount by 7.7%. A stylized model is used to illustrate how the pressure from peer comparison drives the individuals not to seek the information and how this behavior could influence giving and promoting behaviors of a group of marginal individuals.

Suggested Citation

  • Tat Y. Chan & Li Liao & Xiumin Martin & Zhengwei Wang, 2024. "Avoiding Peer Information and Its Effects on Charity Crowdfunding: A Field Experiment," Management Science, INFORMS, vol. 70(4), pages 2272-2293, April.
    • Handle: RePEc:inm:ormnsc:v:70:y:2024:i:4:p:2272-2293
    DOI: 10.1287/mnsc.2023.4807
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2023.4807
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2023.4807?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:70:y:2024:i:4:p:2272-2293. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.