The Demand for Products Linked to Public Goods: Evidence from an Online Field Experiment
We conduct a field experiment at a nonprofit organization’s online store to study how demand changes when consumers’ purchases generate revenue for a charitable cause. Consumers respond strongly when their purchases generate small donations by an anonymous outside group, but responses are substantially weaker when the outside donations are relatively large. Responses are also strong when the outside donation requires a personal donation which consumers generally decline. Overall, increasing the salience of financial incentives appears to dampen consumers’ responses to charitable messages. We also present evidence that the donation pledges reduce price sensitivity and have positive long-term effects on demand.
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.:
- 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.
- Dean Karlan & John A. List, 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," American Economic Review, American Economic Association, vol. 97(5), pages 1774-1793, December.
- Dean Karlan & John A. List, 2006. "Does Price Matter in Charitable Giving? Evidence From a Large-Scale Natural Field Experiment," NBER Working Papers 12338, National Bureau of Economic Research, Inc.
- Dean Karlan & John A. List, 2006. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," Working Papers 1, The Field Experiments Website.
- Karlan, Dean & List, John, 2006. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment," Working Papers 13, Yale University, Department of Economics.
- Chen Yan & Li Xin & MacKie-Mason Jeffrey K, 2005.
"Online Fund-Raising Mechanisms: A Field Experiment,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 5(2), pages 1-39, December.
- Jeffrey MacKie-Mason & Xin Li & Yan Chen, 2006. "Online fund-raising mechanisms: A field experiment," Natural Field Experiments 00225, The Field Experiments Website.
- Mark Bagnoli & Susan G. Watts, 2003. "Selling to Socially Responsible Consumers: Competition and The Private Provision of Public Goods," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(3), pages 419-445, 09.
- Stephan Meier, 2007.
"Do Subsidies Increase Charitable Giving in the Long Run? Matching Donations in a Field Experiment,"
Journal of the European Economic Association,
MIT Press, vol. 5(6), pages 1203-1222, December.
- Stephan Meier, 2006. "Do subsidies increase charitable giving in the long run?: matching donations in a field experiment," Working Papers 06-18, Federal Reserve Bank of Boston.
- Duncan, Brian, 1999. "Modeling charitable contributions of time and money," Journal of Public Economics, Elsevier, vol. 72(2), pages 213-242, May.
- 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 746-55, September.
- 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, University of Chicago Press, vol. 24(4), pages 434-46, March.
- Peter T. L. Popkowski Leszczyc & Michael H. Rothkopf (deceased), 2010. "Charitable Motives and Bidding in Charity Auctions," Management Science, INFORMS, vol. 56(3), pages 399-413, March.
When requesting a correction, please mention this item's handle: RePEc:net:wpaper:0828. 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: (Nicholas Economides)
If references are entirely missing, you can add them using this form.