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:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: Universitätsstraße 25, 35037 Marburg|
Web page: http://www.uni-marburg.de/fb02/
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.:
- 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.
- Alok Bohara & Joe Kerkvliet & John List & Robert Berrens, 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.
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
- John List & Steven Levitt, 2007.
"What do Laboratory Experiments Measuring Social Preferences Reveal About the Real World,"
Artefactual Field Experiments
00480, The Field Experiments Website.
- 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.
- 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.
- 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 1325-48, December.
- David Reiley & John List, 2008.
Artefactual Field Experiments
00091, The Field Experiments Website.
- Steven Yen, 2002. "An econometric analysis of household donations in the USA," Applied Economics Letters, Taylor & Francis Journals, vol. 9(13), pages 837-841.
- 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.
- Schokkaert, Erik, 2006. "The Empirical Analysis of Transfer Motives," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
- 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.
- James Andreoni & Ragan Petrie, 2003. "Public Goods Experiments Without Confidentiality: A Glimpse Into Fund-Raising," Levine's Working Paper Archive 506439000000000520, David K. Levine.
- Armin Falk, 2007. "Gift Exchange in the Field," Econometrica, Econometric Society, vol. 75(5), pages 1501-1511, 09.
- 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," IESA Working Papers Series 0303, Institute for Social Syudies of Andalusia - Higher Council for Scientific Research.
- Pablo Brañas Garza, 2003. "Poverty in Dictator Games: Awakening Solidarity," Economic Working Papers at Centro de Estudios Andaluces E2003/50, Centro de Estudios Andaluces.
- 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.
- 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.
- 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.
- 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:mar:magkse:200802. 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: (Bernd Hayo)
If references are entirely missing, you can add them using this form.