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Learning by Fund-raising

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  • Name Correa, Álvaro

Abstract

From experience, fund-raisers learn to become more efficient solicitors. This paper incorporates fund-raising technology into the theory of charitable giving. A full characterization of the solicitation strategy that maximizes donations net of fund-raising costs is provided. The strategy identi.es a fundraiser incentive to invest in learning by soliciting some early donors who would give less than their solicitation costs. A notion of “excessive” fund-raising is introduced. It is shown that this may worsen with learning. Our model also accomodates a technology with overhead costs. An extension with rising solicitation costs is also considered.

Suggested Citation

  • Name Correa, Álvaro, 2014. "Learning by Fund-raising," UC3M Working papers. Economics we1408, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:we1408
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    References listed on IDEAS

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    Cited by:

    1. Name-Correa, Alvaro J. & Yildirim, Huseyin, 2016. "“Giving” in to social pressure," Games and Economic Behavior, Elsevier, vol. 99(C), pages 99-116.

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    More about this item

    Keywords

    Fund-raising;

    JEL classification:

    • H00 - Public Economics - - General - - - General
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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