IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Using lotteries to finance public goods: theory and experimental evidence

  • Andreas Lange
  • John List
  • Michael Price

This study explores the economics of charitable fund-raising. We begin by developing theory that examines the optimal lottery design while explicitly relaxing both risk-neutrality and preference homogeneity assumptions. We test our theory using a battery of experimental treatments and find that our theoretical predictions are largely confirmed. Specifically, we find that single and multiple prize lotteries dominate the voluntary contribution mechanism both in total dollars raised and the number of contributors attracted. Moreover, we find that the optimal fund-raising mechanism depends critically on the risk postures of potential contributors and preference heterogeneity.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://s3.amazonaws.com/fieldexperiments-papers/papers/00381.pdf
Download Restriction: no

Paper provided by The Field Experiments Website in its series Artefactual Field Experiments with number 00381.

as
in new window

Length:
Date of creation: 2007
Date of revision:
Handle: RePEc:feb:artefa:00381
Contact details of provider: Web page: http://www.fieldexperiments.com

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. anonymous, 1982. "Demand and supply for wool," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, july.
  2. Anonymous, 1982. "Book Reviews," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(02), August.
  3. Anonymous, 1982. "AAES Awards 1981," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(02), August.
  4. Anonymous, 1982. "Back Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 3.
  5. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(3), pages 338-339, March.
  6. Anonymous, 1982. "Back Matter," Food Research Institute Studies, Stanford University, Food Research Institute, issue 03.
  7. John A. List & David Lucking-Reiley, 2000. "The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign," Vanderbilt University Department of Economics Working Papers 0008, Vanderbilt University Department of Economics.
  8. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(6), pages 713-715, June.
  9. Charness, Gary & Rabin, Matthew, 2001. "Understanding Social Preferences with Simple Tests," Department of Economics, Working Paper Series qt4qz9k8vg, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
  10. Anonymous, 1982. "End Materials," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(02), December.
  11. anonymous, 1982. "The tourist industry," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, september.
  12. Matthew Rabin., 1992. "Incorporating Fairness into Game Theory and Economics," Economics Working Papers 92-199, University of California at Berkeley.
  13. Anonymous, 1982. "Front Cover," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(03), December.
  14. Anonymous, 1982. "Contents Page," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(02), August.
  15. Anonymous, 1982. "Cover And Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 13(2), June.
  16. anonymous, 1982. "Economic policy measures," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, july.
  17. Anonymous, 1982. "Research Review," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
  18. Jacob K. Goeree & Emiel Maasland & Sander Onderstal & John L. Turner, 2005. "How (Not) to Raise Money," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 897-926, August.
  19. anonymous, 1982. "Time and economics," Economic Review, Federal Reserve Bank of San Francisco, issue Sum, pages 4-5.
  20. Anonymous, 1982. "Research Review," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 3.
  21. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May.
  22. Eckel, Catherine C. & Wilson, Rick K., 2004. "Is trust a risky decision?," Journal of Economic Behavior & Organization, Elsevier, vol. 55(4), pages 447-465, December.
  23. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(11), pages 1352-1353, November.
  24. Anonymous, 1982. "Cover And Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 13(3), September.
  25. Anonymous, 1982. "Cover And Contents Pages," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(01), July.
  26. Anonymous, 1982. "Book Reviews," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(02), August.
  27. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(7), pages 837-838, July.
  28. Dennis Epple & Richard Romano, 2003. "Collective Choice and Voluntary Provision of Public Goods," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(2), pages 545-572, 05.
  29. anonymous, 1982. "District conditions," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Spr / Sum.
  30. anonymous, 1982. "District conditions," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Win.
  31. Anonymous, 1982. "End Materials," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(02), December.
  32. Anonymous, 1982. "Front Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
  33. anonymous, 1982. "1981/82 dairy season review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, october.
  34. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(2), pages 218-219, February.
  35. Moldovanu, Benny & Sela, Aner, 1999. "The Optimal Allocation of Prizes in Contests," Sonderforschungsbereich 504 Publications 99-75, Sonderforschungsbereich 504, Universit├Ąt Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  36. Anonymous, 1982. "Front Cover," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(02), August.
  37. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(8), pages 955-956, August.
  38. Anonymous, 1982. "Contents Page," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(03), December.
  39. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(1), pages 110-111, January.
  40. Anonymous, 1982. "Research Review," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
  41. Anonymous, 1982. "Front Materials," 1982: Agriculture, Trade, and Development: A Comparative Look at U.S., Canadian, and European Community Policies Meeting, December 1982, Washington, DC 50848, International Agricultural Trade Research Consortium.
  42. Anonymous, 1982. "Front Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
  43. anonymous, 1982. "Money: demand and control," Economic Review, Federal Reserve Bank of San Francisco, issue Fall, pages 5-6.
  44. Anonymous, 1982. "Research Review," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
  45. Anonymous, 1982. "Book Reviews," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(03), December.
  46. Morgan, John & Sefton, Martin, 2000. "Funding Public Goods with Lotteries: Experimental Evidence," Review of Economic Studies, Wiley Blackwell, vol. 67(4), pages 785-810, October.
  47. Andreoni, James, 1988. "Privately provided public goods in a large economy: The limits of altruism," Journal of Public Economics, Elsevier, vol. 35(1), pages 57-73, February.
  48. anonymous, 1982. "Measurement and policy," Economic Review, Federal Reserve Bank of San Francisco, issue Spr, pages 4-5.
  49. Anonymous, 1982. "Front Cover," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(01), April.
  50. Anonymous, 1982. "Cover And Contents Pages," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(01), July.
  51. Anonymous, 1982. "Front Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 3.
  52. Anonymous, 1982. "Abstracts - Selected Papers," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(01), July.
  53. Anonymous, 1982. "End Materials," Journal of Food Distribution Research, Food Distribution Research Society, vol. 13(1), February.
  54. Anonymous, 1982. "26th AAES Conference Papers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(02), August.
  55. Anonymous, 1982. "Book Reviews," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(03), December.
  56. anonymous, 1982. "1980/81 meat industry review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, june.
  57. Anonymous, 1982. "End Materials," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(01), July.
  58. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(5), pages 587-588, May.
  59. Anonymous, 1982. "Book Reviews," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 26(01), April.
  60. Anonymous, 1982. "Cover And Contents Pages," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 7(02), December.
  61. anonymous, 1982. "Six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, november.
  62. Jones, Peter & Sugden, Robert, 1982. "Evaluating choice," International Review of Law and Economics, Elsevier, vol. 2(1), pages 47-65, June.
  63. Anonymous, 1982. "Contents Page," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 50(01), April.
  64. Morgan, John, 2000. "Financing Public Goods by Means of Lotteries," Review of Economic Studies, Wiley Blackwell, vol. 67(4), pages 761-84, October.
  65. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(9), pages 1088-1089, September.
  66. anonymous, 1982. "Six monthly review," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 45, may.
  67. Anonymous, 1982. "Back Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 4.
  68. Anonymous, 1982. "Cover And Contents Pages," Journal of Food Distribution Research, Food Distribution Research Society, vol. 13(1), February.
  69. Anonymous, 1982. "Back Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
  70. Anonymous, 1982. "End Materials," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(01), July.
  71. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(10), pages 1211-1213, October.
  72. Anonymous, 1982. "Back Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 2.
  73. Anonymous, 1982. "Cover And Contents Pages," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 14(02), December.
  74. Anonymous, 1982. "Front Matter," Food Research Institute Studies, Stanford University, Food Research Institute, issue 03.
  75. anonymous, 1982. "About Authors," Management Science, INFORMS, vol. 28(4), pages 452-454, April.
  76. Anonymous, 1982. "Front Matter," Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, issue 1.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:feb:artefa:00381. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joe Seidel)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.