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Social Distance and Quality Ratings in Charity Choice

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  • Alexander L. Brown
  • Jonathan Meer
  • J. Forrest Williams

Abstract

We conduct a laboratory experiment to examine how third-party ratings impact charity choice and donative behavior, particularly in regards to preferences for local charities. Subjects are given a menu of ten charities, with a mix of local and non-local organizations included. We vary whether third-party ratings are displayed on this menu. Subjects perform an effort task to earn money and can choose to donate to their selected charity. We find evidence that subjects' choice of charity is impacted by third-party evaluations but, somewhat surprisingly, there are no obvious preferences for local charities. These third-party assessments have some impact on the percent of earnings that subjects allocate to their selected charity; local charities also accrue more donations, though these results are somewhat imprecise.

Suggested Citation

  • Alexander L. Brown & Jonathan Meer & J. Forrest Williams, 2014. "Social Distance and Quality Ratings in Charity Choice," NBER Working Papers 20182, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:20182
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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