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Do Donation Ceilings Increase Contributions? Evidence from an Experimental Study

Author

Listed:
  • François Cochard

    (Université Marie et Louis Pasteur, CRESE (UR3190), F-25000 Besançon, France)

  • Emmanuel Peterle

    (Université Marie et Louis Pasteur, CRESE (UR3190), F-25000 Besançon, France)

  • Jean-Christian Tisserand

    (CEREN (UR 7477), Burgundy School of Business, F-21000, Dijon, France)

Abstract

We study how setting a maximum limit on donations affects how much people give to charity. In a laboratory experiment with 210 participants, we compare three conditions: a neutral baseline, a suggested donation amount, and a capped maximum donation. We find that imposing a donation ceiling significantly increases both the likelihood and the amount of giving compared to the baseline. Moreover, ceilings perform at least as well as suggestions in our experimental setting.

Suggested Citation

  • François Cochard & Emmanuel Peterle & Jean-Christian Tisserand, 2025. "Do Donation Ceilings Increase Contributions? Evidence from an Experimental Study," Working Papers 2025-06, CRESE.
    • Handle: RePEc:crb:wpaper:2025-06
    as

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    References listed on IDEAS

    as
    1. Abhishek Bhati & Ruth K. Hansen, 2020. "A literature review of experimental studies in fundraising," Journal of Behavioral Public Administration, Center for Experimental and Behavioral Public Administration, vol. 3(1).
    2. Argo, Nichole & Klinowski, David & Krishnamurti, Tamar & Smith, Sarah, 2020. "The completion effect in charitable crowdfunding," Journal of Economic Behavior & Organization, Elsevier, vol. 172(C), pages 17-32.
    3. Eric Johnson & Suzanne Shu & Benedict Dellaert & Craig Fox & Daniel Goldstein & Gerald Häubl & Richard Larrick & John Payne & Ellen Peters & David Schkade & Brian Wansink & Elke Weber, 2012. "Beyond nudges: Tools of a choice architecture," Marketing Letters, Springer, vol. 23(2), pages 487-504, June.
    4. Umer, Hamza & Kurosaki, Takashi & Iwasaki, Ichiro, 2022. "Unearned Endowment and Charity Recipient Lead to Higher Donations: A Meta-Analysis of the Dictator Game Lab Experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    5. Maja Adena & Steffen Huck, 2020. "Online Fundraising, Self-Image, and the Long-Term Impact of Ask Avoidance," Management Science, INFORMS, vol. 66(2), pages 722-743, February.
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    Keywords

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    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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