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Charitable Lottery Structure and Fund Raising: Theory and Evidence

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  • Donald J. Dale

Abstract

Do fixed-prize charitable lotteries generate more net revenue than do revenue-dependent lotteries? I present the results of an experiment designed to test a theoretical prediction of the relationship between the prize structure of a lottery funding a public good and individuals' participation in the lottery. I find that a fixed-prize lottery configuration induces significantly greater participation and a significantly higher level of public good funding than does a revenue-dependent lottery.

Suggested Citation

  • Donald J. Dale, 2004. "Charitable Lottery Structure and Fund Raising: Theory and Evidence," Experimental Economics, Springer;Economic Science Association, vol. 7(3), pages 217-234, October.
  • Handle: RePEc:kap:expeco:v:7:y:2004:i:3:p:217-234
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    Cited by:

    1. Sebastian J. Goerg & John P. Lightle & Dmitry Ryvkin, 2016. "Priming The Charitable Pump: An Experimental Investigation Of Two-Stage Raffles," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 508-519, January.
    2. Lange, Andreas & List, John A. & Price, Michael K., 2007. "A fundraising mechanism inspired by historical tontines: Theory and experimental evidence," Journal of Public Economics, Elsevier, vol. 91(9), pages 1750-1782, September.
    3. Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 121(2), pages 747-782.
    4. Carpenter, Jeffrey P., 2018. "The Shape of Warm Glow: Field Experimental Evidence from a Fundraiser," IZA Discussion Papers 11760, Institute for the Study of Labor (IZA).
    5. repec:eee:pubeco:v:150:y:2017:i:c:p:30-38 is not listed on IDEAS
    6. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
    7. Jiří Špalek & Zuzana Berná, 2011. "Threshold Effectiveness in Contributing to the Public Goods: Experiments Involving Czech Students," Prague Economic Papers, University of Economics, Prague, vol. 2011(3), pages 250-267.

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