IDEAS home Printed from https://ideas.repec.org/p/lsg/lsgwps/wp131.html
   My bibliography  Save this paper

Isolating Warm Glow in Charitable Auction Giving

Author

Listed:
  • Kyriaki Remoundou
  • Andreas C. Drichoutis
  • Phoebe Koundouri

Abstract

We use a novel experimental design to isolate warm glow and measure its extent in an auction that contributes the revenues by highest bidders to a charity. A sample of consumers bid to upgrade an agricultural product from a river basin that is not in good ecological status. Charitable donations are crowed-out, one to one, by a reduction in the experimenters� contribution to the charity allowing warm glow to be isolated. Results suggest that subjects do not bid higher in the charitable auction compared to the standard auction (control) treatment therefore providing no evidence of warm glow motivations behind giving.

Suggested Citation

  • Kyriaki Remoundou & Andreas C. Drichoutis & Phoebe Koundouri, 2013. "Isolating Warm Glow in Charitable Auction Giving," GRI Working Papers 131, Grantham Research Institute on Climate Change and the Environment.
  • Handle: RePEc:lsg:lsgwps:wp131
    as

    Download full text from publisher

    File URL: http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2014/02/WP131-Isolating-warm-glow-in-charitable-auction-giving.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dermot J. Hayes & Jason F. Shogren & Seung Youll Shin & James B. Kliebenstein, 1995. "Valuing Food Safety in Experimental Auction Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 40-53.
    2. Mirco Tonin & Michael Vlassopoulos, 2014. "An experimental investigation of intrinsic motivations for giving," Theory and Decision, Springer, vol. 76(1), pages 47-67, January.
    3. Anne Rozan, 2004. "Willingness-to-pay for food safety: an experimental investigation of quality certification on bidding behaviour," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(4), pages 409-425, December.
    4. Michael S. Haigh & John A. List, 2005. "Do Professional Traders Exhibit Myopic Loss Aversion? An Experimental Analysis," Journal of Finance, American Finance Association, vol. 60(1), pages 523-534, February.
    5. Konow, James, 2010. "Mixed feelings: Theories of and evidence on giving," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 279-297, April.
    6. Michael Burton & Dan Rigby & Trevor Young, 2001. "Consumer attitudes to genetically modified organisms in food in the UK," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 28(4), pages 479-498, December.
    7. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-1458, December.
    8. Ulrich Enneking, 2004. "Willingness-to-pay for safety improvements in the German meat sector: the case of the Q&S label," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 31(2), pages 205-223, June.
    9. Crumpler, Heidi & Grossman, Philip J., 2008. "An experimental test of warm glow giving," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1011-1021, June.
    10. Chang, Jae Bong & Lusk, Jayson L., 2009. "Fairness and food choice," Food Policy, Elsevier, vol. 34(6), pages 483-491, December.
    11. Fredrik Carlsson & Peter Frykblom & Carl Johan Lagerkvist, 2007. "Consumer Benefits of Labels and Bans on GM Foods—Choice Experiments with Swedish Consumers," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 152-161.
    12. Wendy J. Umberger & Dillon M. Feuz, 2004. "The Usefulness of Experimental Auctions in Determining Consumers' Willingness-to-Pay for Quality-Differentiated Products," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 26(2), pages 170-185.
    13. Nick Feltovich, 2011. "What'S To Know About Laboratory Experimentation In Economics?," Journal of Economic Surveys, Wiley Blackwell, vol. 25(2), pages 371-379, April.
    14. Morten Mørkbak & Tove Christensen & Dorte Gyrd-Hansen, 2010. "Choke Price Bias in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(4), pages 537-551, April.
    15. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    16. Harrison, Glenn W. & Lau, Morten I. & Elisabet Rutström, E., 2009. "Risk attitudes, randomization to treatment, and self-selection into experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 70(3), pages 498-507, June.
    17. Anne Rozan & Anne Stenger & Marc Willinger, 2004. "Willingness-to-pay for food safety: An experimental investigation of quality certification on bidding behaviour," Framed Field Experiments 00197, The Field Experiments Website.
    18. Nunes, Paulo A. L. D. & Schokkaert, Erik, 2003. "Identifying the warm glow effect in contingent valuation," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 231-245, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lsg:lsgwps:wp131. 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: (The GRI Administration). General contact details of provider: http://edirc.repec.org/data/grlseuk.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.