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Matching Contributions and the Voluntary Provision of a Pure Public Good: Experimental Evidence

  • Ronald J. Baker II

    ()

    (Millersville University of Pennsylvania)

  • James M. Walker

    ()

    (Indiana University Bloomington)

  • Arlington W. Williams

    ()

    (Indiana University Bloomington)

Laboratory experiments are used to study the voluntary provision of a pure public good in the presence of an anonymous external donor. The external funds are used in two different settings, lump-sum matching and one-to-one matching, to examine how allocations to the public good are affected. The experimental results reveal that allocations to the public good under lumpsum matching are significantly higher, and have significantly lower within-group dispersion, relative to one-to-one matching and a baseline setting without external matching funds.

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File URL: http://www.iub.edu/~caepr/RePEc/PDF/2006/CAEPR2006-007_updated.pdf
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Paper provided by Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington in its series Caepr Working Papers with number 2006-007.

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Length: 35 pages
Date of creation: Aug 2006
Date of revision: Dec 2007
Handle: RePEc:inu:caeprp:2006007
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  1. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
  2. James Andreoni, 2006. "Leadership Giving in Charitable Fund-Raising," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(1), pages 1-22, 01.
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  4. Dean Karlan & John List, 2006. "Does price matter in charitable giving? Evidence from a large-scale natural field experiment," Natural Field Experiments 00279, The Field Experiments Website.
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  7. repec:dgr:kubcen:2001100 is not listed on IDEAS
  8. repec:ner:tilbur:urn:nbn:nl:ui:12-302954 is not listed on IDEAS
  9. David Lucking-Reiley & John List, 2002. "The effects of seed money and refunds on charitable giving: Experimental evidence from a university capital campaign," Natural Field Experiments 00301, The Field Experiments Website.
  10. Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," The Quarterly Journal of Economics, MIT Press, vol. 121(2), pages 747-782, May.
  11. Isaac, R. Mark & Walker, James M. & Williams, Arlington W., 1994. "Group size and the voluntary provision of public goods : Experimental evidence utilizing large groups," Journal of Public Economics, Elsevier, vol. 54(1), pages 1-36, May.
  12. Eckel, Catherine C. & Grossman, Philip J., 2003. "Rebate versus matching: does how we subsidize charitable contributions matter?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 681-701, March.
  13. Marks, Melanie & Croson, Rachel, 1998. "Alternative rebate rules in the provision of a threshold public good: An experimental investigation," Journal of Public Economics, Elsevier, vol. 67(2), pages 195-220, February.
  14. Douglas D. Davis, 2006. "Rebate subsidies, matching subsidies and isolation effects," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 1, pages 13-22, July.
  15. Potters, J.J.M. & Sefton, M. & Vesterlund, L., 2001. "Why Announce Leadership Contributions? An Experimental Study of the Signaling and Reciprocity Hypotheses," Discussion Paper 2001-100, Tilburg University, Center for Economic Research.
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