Inefficient but effective? A field experiment on the effectiveness of direct and indirect transfer mechanisms
We conduct a field experiment on direct and indirect transfer mechanisms. It shows that people are willing to donate significantly more if the donation is indirect, i.e., it is tied to the purchase of a good with a price premium, rather than made directly. This points to an efficiency–effectiveness trade–off: even though indirect donations are less efficient than direct donations, they are more effective in mobilizing resources. Our findings hold for ‘Fair Trade’ coffee as well as for ‘normal’ coffee. However, the strength of the efficiency–effectiveness trade–off is higher in the case of ‘Fair Trade’.
|Date of creation:||Feb 2008|
|Date of revision:||Mar 2008|
|Contact details of provider:|| Postal: Kollegiengebäde II, Platz der Alten Synagoge, 79085 Freiburg|
Phone: +49 +761 / 203 2301
Fax: +49 +761 / 203 2303
Web page: http://www.vwl.uni-freiburg.de/iwipol/sopo.htm
More information through EDIRC
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.:
- Steven Yen, 2002. "An econometric analysis of household donations in the USA," Applied Economics Letters, Taylor & Francis Journals, vol. 9(13), pages 837-841.
- Bruno S. Frey & Iris Bohnet, 1999. "Social Distance and Other-Regarding Behavior in Dictator Games: Comment," American Economic Review, American Economic Association, vol. 89(1), pages 335-339, March.
- Eckel, Catherine C & Grossman, Philip J, 1998. "Are Women Less Selfish Than Men? Evidence from Dictator Experiments," Economic Journal, Royal Economic Society, vol. 108(448), pages 726-35, May.
- Branas-Garza, Pablo, 2006.
"Poverty in dictator games: Awakening solidarity,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 60(3), pages 306-320, July.
- Pablo Brañas Garza, 2003. "Poverty in Dictator Games: Awakening Solidarity," Economic Working Papers at Centro de Estudios Andaluces E2003/50, Centro de Estudios Andaluces.
- Pablo Brañas-Garza, 2003. "Poverty in Dictator Games: Awakening Solidarity," IESA Working Papers Series 0303, Institute for Social Syudies of Andalusia - Higher Council for Scientific Research.
- Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
- Strahilevitz, Michal & Myers, John G, 1998. " Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You Are Trying to Sell," Journal of Consumer Research, Oxford University Press, vol. 24(4), pages 434-46, March.
- Steven D. Levitt & John A. List, 2007.
"What Do Laboratory Experiments Measuring Social Preferences Reveal About the Real World?,"
Journal of Economic Perspectives,
American Economic Association, vol. 21(2), pages 153-174, Spring.
- Steven Levitt & John List, 2007. "What do Laboratory Experiments Measuring Social Preferences Reveal About the Real World," Artefactual Field Experiments 00480, The Field Experiments Website.
- John List & David Reiley, 2008.
Artefactual Field Experiments
00091, The Field Experiments Website.
- Armin Falk, 2007. "Gift Exchange in the Field," Econometrica, Econometric Society, vol. 75(5), pages 1501-1511, 09.
- James Andreoni & Ragan Petrie, 2003.
"Public Goods Experiments Without Confidentiality: A Glimpse Into Fund-Raising,"
Levine's Working Paper Archive
506439000000000520, David K. Levine.
- Andreoni, James & Petrie, Ragan, 2004. "Public goods experiments without confidentiality: a glimpse into fund-raising," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1605-1623, July.
- Soetevent, Adriaan R., 2005. "Anonymity in giving in a natural context--a field experiment in 30 churches," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2301-2323, December.
- Hoffman, Elizabeth & McCabe, Kevin & Smith, Vernon L, 1996. "Social Distance and Other-Regarding Behavior in Dictator Games," American Economic Review, American Economic Association, vol. 86(3), pages 653-60, June.
- John A. List & Robert P. Berrens & Alok K. Bohara & Joe Kerkvliet, 2004.
"Examining the Role of Social Isolation on Stated Preferences,"
American Economic Review,
American Economic Association, vol. 94(3), pages 741-752, June.
- Robert Berrens & Alok Bohara & Joe Kerkvliet & John List, 2004. "Examining the Role of Social Isolation on Stated Preferences," Artefactual Field Experiments 00491, The Field Experiments Website.
- LeClair, Mark S., 2002. "Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade," World Development, Elsevier, vol. 30(6), pages 949-958, June.
- Schokkaert, Erik, 2006. "The Empirical Analysis of Transfer Motives," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
- Charness, Gary & Gneezy, Uri, 2008. "What's in a name? Anonymity and social distance in dictator and ultimatum games," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 29-35, October.
When requesting a correction, please mention this item's handle: RePEc:fre:wpaper:2. 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: (Günther G. Schulze)
If references are entirely missing, you can add them using this form.