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Paying the Price of Sweetening Your Donation - Evidence from a Natural Field Experiment

Author

Listed:
  • Alpízar, Francisco

    (Environment for Development Center for Central America, CATIE, Turrialba, Costa Rica)

  • Martinsson, Peter

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Using a natural field experiment in a recreational site, a public good almost fully dependent on voluntary donations, we explored the crowding-out effect of gift rewards. First, we investigated whether receiving a map in appreciation of a donation crowded out prosocial behavior and found no significant effect of giving the map. Second, we explored the effect of adding the map to a treatment designed to increase donations. Interestingly, when the gift was combined with our attempt to trigger reputational and self image motives, the probability of donating decreased significantly, compared to the social reference treatment alone.

Suggested Citation

  • Alpízar, Francisco & Martinsson, Peter, 2010. "Paying the Price of Sweetening Your Donation - Evidence from a Natural Field Experiment," Working Papers in Economics 460, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0460
    Note: Published in Economics Letters, 2012, Vol 114, pp. 182-185.
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    References listed on IDEAS

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    1. Ernst Fehr & Simon Gächter, 2000. "Fairness and Retaliation: The Economics of Reciprocity," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 159-181, Summer.
    2. Falk, Armin & Fischbacher, Urs, 2006. "A theory of reciprocity," Games and Economic Behavior, Elsevier, vol. 54(2), pages 293-315, February.
    3. Dan Ariely & Anat Bracha & Stephan Meier, 2009. "Doing Good or Doing Well? Image Motivation and Monetary Incentives in Behaving Prosocially," American Economic Review, American Economic Association, vol. 99(1), pages 544-555, March.
    4. Frey, Bruno S & Oberholzer-Gee, Felix, 1997. "The Cost of Price Incentives: An Empirical Analysis of Motivation Crowding-Out," American Economic Review, American Economic Association, vol. 87(4), pages 746-755, September.
    5. Alpizar, Francisco & Carlsson, Fredrik & Johansson-Stenman, Olof, 2008. "Anonymity, reciprocity, and conformity: Evidence from voluntary contributions to a national park in Costa Rica," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1047-1060, June.
    6. Edward P. Lazear, 2000. "Performance Pay and Productivity," American Economic Review, American Economic Association, vol. 90(5), pages 1346-1361, December.
    7. Jen Shang & Rachel Croson, 2009. "A Field Experiment in Charitable Contribution: The Impact of Social Information on the Voluntary Provision of Public Goods," Economic Journal, Royal Economic Society, vol. 119(540), pages 1422-1439, October.
    8. Bruno S. Frey & Stephan Meier, 2004. "Social Comparisons and Pro-social Behavior: Testing "Conditional Cooperation" in a Field Experiment," American Economic Review, American Economic Association, vol. 94(5), pages 1717-1722, December.
    9. Martin, Richard & Randal, John, 2008. "How is donation behaviour affected by the donations of others?," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 228-238, July.
    10. Armin Falk, 2007. "Gift Exchange in the Field," Econometrica, Econometric Society, vol. 75(5), pages 1501-1511, September.
    11. Rabin, Matthew, 1993. "Incorporating Fairness into Game Theory and Economics," American Economic Review, American Economic Association, vol. 83(5), pages 1281-1302, December.
    12. Bruno Frey & Stephan Meier, 2004. "In a field experiment," Natural Field Experiments 00243, The Field Experiments Website.
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    Citations

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    Cited by:

    1. Alem, Yonas & Eggert, Håkan & Kocher, Martin G. & Ruhinduka, Remidius D., 2018. "Why (field) experiments on unethical behavior are important: Comparing stated and revealed behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 156(C), pages 71-85.
    2. Claudia Townsend & Darren DahlEditor & Page MoreauAssociate Editor, 2017. "The Price of Beauty: Differential Effects of Design Elements with and without Cost Implications in Nonprofit Donor Solicitations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(4), pages 794-815.
    3. Fredrik Carlsson & Haoran He & Peter Martinsson, 2013. "Easy come, easy go," Experimental Economics, Springer;Economic Science Association, vol. 16(2), pages 190-207, June.
    4. Fang, Xing, 2022. "Why we hide good deeds? The selfless and anonymous donation behavior in crowdfunding," Technology in Society, Elsevier, vol. 71(C).
    5. Alpízar, Francisco & Martinsson, Peter & Nordén, Anna, 2015. "Do entrance fees crowd out donations for public goods? Evidence from a protected area in Costa Rica," Environment and Development Economics, Cambridge University Press, vol. 20(3), pages 311-326, June.
    6. Asiedu, Edward & Ibanez, Marcela, 2014. "The weaker sex? Gender differences in punishment across Matrilineal and Patriarchal Societies," GlobalFood Discussion Papers 165743, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    7. Kubo, Takahiro & Shoji, Yasushi & Tsuge, Takahiro & Kuriyama, Koichi, 2018. "Voluntary Contributions to Hiking Trail Maintenance: Evidence From a Field Experiment in a National Park, Japan," Ecological Economics, Elsevier, vol. 144(C), pages 124-128.

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    More about this item

    Keywords

    Crowding-out; donation; natural field experiment; reciprocity;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D10 - Microeconomics - - Household Behavior - - - General
    • D60 - Microeconomics - - Welfare Economics - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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