IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0273971.html
   My bibliography  Save this article

Sure-thing vs. probabilistic charitable giving: Experimental evidence on the role of individual differences in risky and ambiguous charitable decision-making

Author

Listed:
  • Philipp Schoenegger
  • Miguel Costa-Gomes

Abstract

Charities differ, among other things, alongside the likelihood that their interventions succeed and produce the desired outcomes and alongside the extent that such likelihood can even be articulated numerically. In this paper, we investigate what best explains charitable giving behaviour regarding charities that have interventions that will succeed with a quantifiable and high probability (sure-thing charities) and charities that have interventions that only have a small and hard to quantify probability of bringing about the desired end (probabilistic charities). We study individual differences in risk/ambiguity attitudes, empathy, numeracy, optimism, and donor type (warm glow vs. pure altruistic donor type) as potential predictors of this choice. We conduct a money incentivised, pre-registered experiment on Prolific on a representative UK sample (n = 1,506) to investigate participant choices (i) between these two types of charities and (ii) about one randomly selected charity. Overall, we find little to no evidence that individual differences predict choices regarding decisions about sure-thing and probabilistic charities, with the exception that a purely altruistic donor type predicts donations to probabilistic charities when participants were presented with a randomly selected charity in (ii). Conducting exploratory equivalence tests, we find that the data provide robust evidence in favour of the absence of an effect (or a negligibly small effect) where we fail to reject the null. This is corroborated by exploratory Bayesian analyses. We take this paper to be contributing to the literature on charitable giving via this comprehensive null-result in pursuit of contributing to a cumulative science.

Suggested Citation

  • Philipp Schoenegger & Miguel Costa-Gomes, 2022. "Sure-thing vs. probabilistic charitable giving: Experimental evidence on the role of individual differences in risky and ambiguous charitable decision-making," PLOS ONE, Public Library of Science, vol. 17(9), pages 1-26, September.
  • Handle: RePEc:plo:pone00:0273971
    DOI: 10.1371/journal.pone.0273971
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0273971
    Download Restriction: no

    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0273971&type=printable
    Download Restriction: no

    File URL: https://libkey.io/10.1371/journal.pone.0273971?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
    ---><---

    References listed on IDEAS

    as
    1. Haisley, Emily C. & Weber, Roberto A., 2010. "Self-serving interpretations of ambiguity in other-regarding behavior," Games and Economic Behavior, Elsevier, vol. 68(2), pages 614-625, March.
    2. Matthias Sutter & Martin G. Kocher & Daniela Glätzle-Rützler & Stefan T. Trautmann, 2013. "Impatience and Uncertainty: Experimental Decisions Predict Adolescents' Field Behavior," American Economic Review, American Economic Association, vol. 103(1), pages 510-531, February.
    3. Mesa-Vázquez, Ernesto & Rodriguez-Lara, Ismael & Urbano, Amparo, 2021. "Standard vs random dictator games: On the effects of role uncertainty and framing on generosity," Economics Letters, Elsevier, vol. 206(C).
    4. Elena Cettolin & Arno Riedl & Giang Tran, 2017. "Giving in the face of risk," Journal of Risk and Uncertainty, Springer, vol. 55(2), pages 95-118, December.
    5. Silke Boenigk & Marcel Lee Mayr, 2016. "The Happiness of Giving: Evidence from the German Socioeconomic Panel That Happier People Are More Generous," Journal of Happiness Studies, Springer, vol. 17(5), pages 1825-1846, October.
    6. Milo Bianchi & Jean-Marc Tallon, 2019. "Ambiguity Preferences and Portfolio Choices: Evidence from the Field," PSE-Ecole d'économie de Paris (Postprint) halshs-01886572, HAL.
    7. 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.
    8. Milo Bianchi & Jean-Marc Tallon, 2019. "Ambiguity Preferences and Portfolio Choices: Evidence from the Field," Post-Print halshs-01886572, HAL.
    9. Bostjan Antoncic & Tina Bratkovic kregar & Gangaram Singh & Alex F. Denoble, 2015. "The Big Five Personality–Entrepreneurship Relationship: Evidence from Slovenia," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(3), pages 819-841, July.
    10. Garcia, Thomas & Massoni, Sébastien & Villeval, Marie Claire, 2020. "Ambiguity and excuse-driven behavior in charitable giving," European Economic Review, Elsevier, vol. 124(C).
    11. Caviola, Lucius & Schubert, Stefan & Nemirow, Jason, 2020. "The many obstacles to effective giving," Judgment and Decision Making, Cambridge University Press, vol. 15(2), pages 159-172, March.
    12. Metzger, Laura & Günther, Isabel, 2019. "Making an impact? The relevance of information on aid effectiveness for charitable giving. A laboratory experiment," Journal of Development Economics, Elsevier, vol. 136(C), pages 18-33.
    13. Engel, Christoph & Goerg, Sebastian J., 2018. "If the worst comes to the worst: Dictator giving when recipient’s endowments are risky," European Economic Review, Elsevier, vol. 105(C), pages 51-70.
    14. Julia Muller & Christiane Schwieren, 2012. "What can the Big Five Personality Factors contribute to explain Small-Scale Economic Behavior?," Tinbergen Institute Discussion Papers 12-028/1, Tinbergen Institute.
    15. Verhaert, Griet A. & Van den Poel, Dirk, 2011. "Empathy as added value in predicting donation behavior," Journal of Business Research, Elsevier, vol. 64(12), pages 1288-1295.
    16. repec:cup:judgdm:v:15:y:2020:i:2:p:159-172 is not listed on IDEAS
    17. Lucius Caviola & Stefan Schubert & Jason Nemirow, 2020. "The many obstacles to effective giving," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 15(2), pages 159-172, March.
    18. Milo Bianchi & Jean-Marc Tallon, 2014. "Ambiguity Preferences and Portfolio Choices: Evidence from the Field," Post-Print halshs-01109655, HAL.
    19. Felix Holzmeister & Matthias Stefan, 2021. "The risk elicitation puzzle revisited: Across-methods (in)consistency?," Experimental Economics, Springer;Economic Science Association, vol. 24(2), pages 593-616, June.
    20. Andreas Kappes & Anne-Marie Nussberger & Nadira S. Faber & Guy Kahane & Julian Savulescu & Molly J. Crockett, 2018. "Uncertainty about the impact of social decisions increases prosocial behaviour," Nature Human Behaviour, Nature, vol. 2(8), pages 573-580, August.
    21. Carpenter, Jeffrey, 2021. "The shape of warm glow: Field experimental evidence from a fundraiser," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 555-574.
    22. Matteo M. Galizzi & Daniel Navarro-Martinez, 2019. "On the External Validity of Social Preference Games: A Systematic Lab-Field Study," Management Science, INFORMS, vol. 65(3), pages 976-1002, March.
    23. Olschewski, Sebastian & Dietsch, Marius & Ludvig, Elliot A., 2019. "Anti-social motives explain increased risk aversion for others in decisions from experience," Judgment and Decision Making, Cambridge University Press, vol. 14(1), pages 58-71, January.
    24. Yoram Halevy, 2007. "Ellsberg Revisited: An Experimental Study," Econometrica, Econometric Society, vol. 75(2), pages 503-536, March.
    25. repec:cup:judgdm:v:14:y:2019:i:1:p:58-71 is not listed on IDEAS
    26. Christine L. Exley, 2016. "Excusing Selfishness in Charitable Giving: The Role of Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(2), pages 587-628.
    27. Marc-Lluís Vives & Oriel FeldmanHall, 2018. "Tolerance to ambiguous uncertainty predicts prosocial behavior," Nature Communications, Nature, vol. 9(1), pages 1-9, December.
    28. Milo Bianchi & Jean-Marc Tallon, 2019. "Ambiguity Preferences and Portfolio Choices: Evidence from the Field," Management Science, INFORMS, vol. 65(4), pages 1486-1501, April.
    29. Liang, Feng & Paulo, Rui & Molina, German & Clyde, Merlise A. & Berger, Jim O., 2008. "Mixtures of g Priors for Bayesian Variable Selection," Journal of the American Statistical Association, American Statistical Association, vol. 103, pages 410-423, March.
    30. Nielsen, Kirby, 2019. "Dynamic risk preferences under realized and paper outcomes," Journal of Economic Behavior & Organization, Elsevier, vol. 161(C), pages 68-78.
    31. Sebastian Olschewski & Marius Dietsch & Elliot A. Ludvig, 2019. "Anti-social motives explain increased risk aversion for others in decisions from experience," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 14(1), pages 58-71, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Billur Aksoy & Silvana Krasteva, 2020. "When does less information translate into more giving to public goods?," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 1148-1177, December.
    2. Paul Bokern & Jona Linde & Arno Riedl & Peter Werner, 2023. "The Robustness of Preferences during a Crisis: The Case of Covid-19," CESifo Working Paper Series 10595, CESifo.
    3. Federico Echenique & Taisuke Imai & Kota Saito, 2019. "Decision Making under Uncertainty: An Experimental Study in Market Settings," Papers 1911.00946, arXiv.org, revised May 2021.
    4. Dlugosch, Dennis & Wang, Mei, 2022. "Ambiguity, ambiguity aversion and foreign bias: New evidence from international panel data," Journal of Banking & Finance, Elsevier, vol. 140(C).
    5. Sujoy Mukerji & Han N. Ozsoylev & Jean‐Marc Tallon, 2023. "Trading Ambiguity: A Tale Of Two Heterogeneities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(3), pages 1127-1164, August.
    6. Loïc Berger & Louis Eeckhoudt, 2021. "Risk, Ambiguity, and the Value of Diversification," Management Science, INFORMS, vol. 67(3), pages 1639-1647, March.
    7. Luo, Di & Mishra, Tapas & Yarovaya, Larisa & Zhang, Zhuang, 2021. "Investing during a Fintech Revolution: Ambiguity and return risk in cryptocurrencies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 73(C).
    8. Guohui Guan & Zongxia Liang & Yilun Song, 2022. "The continuous-time pre-commitment KMM problem in incomplete markets," Papers 2210.13833, arXiv.org, revised Feb 2023.
    9. Cosmin L. Ilut & Martin Schneider, 2022. "Modeling Uncertainty as Ambiguity: a Review," NBER Working Papers 29915, National Bureau of Economic Research, Inc.
    10. Tai-Yuen Hon & Massoud Moslehpour & Kai-Yin Woo, 2021. "Review on Behavioral Finance with Empirical Evidence," Advances in Decision Sciences, Asia University, Taiwan, vol. 25(4), pages 15-41, December.
    11. Philipp K. Illeditsch & Jayant V. Ganguli & Scott Condie, 2021. "Information Inertia," Journal of Finance, American Finance Association, vol. 76(1), pages 443-479, February.
    12. Kim, Hwa-Sung, 2021. "Risk management and optimal capital structure under ambiguity," Finance Research Letters, Elsevier, vol. 40(C).
    13. Daniela Costa & Nuno Fernandes & Joana Arantes & José Keating, 2022. "A dual-process approach to prosocial behavior under COVID-19 uncertainty," PLOS ONE, Public Library of Science, vol. 17(3), pages 1-18, March.
    14. Danae Arroyos-Calvera & Rebecca McDonald & Daniel Read & Bruce Rigal, 2020. "Unpacking moral wiggle room: Information preferences and not information itself predict generosity," Discussion Papers 20-19, Department of Economics, University of Birmingham.
    15. Li, Wenhui & Ockenfels, Peter & Wilde, Christian, 2021. "The effect of ambiguity on price formation and trading behavior in financial markets," SAFE Working Paper Series 326, Leibniz Institute for Financial Research SAFE.
    16. Brañas-Garza, Pablo & Kovářík, Jaromír & Lopez-Martin, Maria del Carmen, 2020. "No moral wiggles in e5 and e1,000 dictator games under ambiguity," MPRA Paper 98132, University Library of Munich, Germany.
    17. Marie Claire Villeval, 2019. "Comportements (non) éthiques et stratégies morales," Revue économique, Presses de Sciences-Po, vol. 70(6), pages 1021-1046.
    18. Jiang, Julia & Liu, Jun & Tian, Weidong & Zeng, Xudong, 2022. "Portfolio concentration, portfolio inertia, and ambiguous correlation," Journal of Economic Theory, Elsevier, vol. 203(C).
    19. Antoine Billot & Sujoy Mukerji & Jean-Marc Tallon, 2020. "Market Allocations under Ambiguity: A Survey," Revue économique, Presses de Sciences-Po, vol. 71(2), pages 267-282.
    20. Li, Jiangyan & Fairley, Kim & Fenneman, Achiel, 2024. "Does it matter how we produce ambiguity in experiments?," MPRA Paper 122336, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    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:plo:pone00:0273971. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    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.