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Defaults in charitable giving

Listed author(s):
  • Jonathan Schulz

    ()

    (Department of Economics, University of Nottingham.)

  • Petra Thiemann

    ()

    (University of Southern California.)

  • Christian Thoeni

    ()

    (University of Lausanne.)

In an experimental setup we investigate the effect of defaults on charitable giving. In the treatment group, subjects can either specify a charity of their choice, or select one from a default list of five well-known charities; in the control group we do not provide the list. In a sample of 869 subjects we find that offering a list of default charities doubles both the fraction of donors and the aggregate amount of donations. These findings point to the importance of psychological factors like affective reactions in donation decisions.

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File URL: http://www.nottingham.ac.uk/cedex/documents/papers/cedex-discussion-paper-2015-06.pdf
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Paper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2015-06.

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Date of creation: Jun 2015
Handle: RePEc:not:notcdx:2015-06
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School of Economics University of Nottingham University Park Nottingham NG7 2RD

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Web page: http://www.nottingham.ac.uk/economics/cedex/

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  1. Steffen Altmann & Armin Falk & Paul Heidhues & Rajshri Jayaraman, 2014. "Defaults and Donations: Evidence from a Field Experiment," CESifo Working Paper Series 5118, CESifo Group Munich.
  2. Stefano DellaVigna & John A. List & Ulrike Malmendier, 2012. "Testing for Altruism and Social Pressure in Charitable Giving," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 1-56.
  3. McManus, Brian & Bennet, Richard, 2011. "The demand for products linked to public goods: Evidence from an online field experiment," Journal of Public Economics, Elsevier, vol. 95(5-6), pages 403-415, June.
  4. Schulz, Jonathan F. & Fischbacher, Urs & Thöni, Christian & Utikal, Verena, 2014. "Affect and fairness: Dictator games under cognitive load," Journal of Economic Psychology, Elsevier, vol. 41(C), pages 77-87.
  5. Shane Frederick, 2005. "Cognitive Reflection and Decision Making," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 25-42, Fall.
  6. 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.
  7. John Morgan & Martin Sefton, 2000. "Funding Public Goods with Lotteries: Experimental Evidence," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 785-810.
  8. Jonathan Schulz & Urs Fischbacher & Christian Thöni & Verena Utikal, 2011. "Affect and Fairness," TWI Research Paper Series 68, Thurgauer Wirtschaftsinstitut, Universit�t Konstanz.
  9. Brigitte C. Madrian & Dennis F. Shea, 2001. "The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1149-1187.
  10. repec:feb:framed:0087 is not listed on IDEAS
  11. McManus, Brian & Bennet, Richard, 2011. "The demand for products linked to public goods: Evidence from an online field experiment," Journal of Public Economics, Elsevier, vol. 95(5), pages 403-415.
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