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Does category reporting increase donations to charity? A signalling game approach

  • Edward Cartwright

    ()

  • Amrish Patel

    ()

Many charities report donations using categories. We question whether such category reporting increases donations in a signalling game where a donor is either generous or not generous. Conditions are derived under which category reporting will increase giving or decrease giving. Category reporting will increase giving if the probability a donor is generous is low and/or donor preferences depend a lot on type.

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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0924.pdf
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Paper provided by School of Economics, University of Kent in its series Studies in Economics with number 0924.

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Date of creation: Dec 2009
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Handle: RePEc:ukc:ukcedp:0924
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School of Economics, University of Kent, Canterbury, Kent, CT2 7NP

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  1. Harbaugh, William T., 1998. "What do donations buy?: A model of philanthropy based on prestige and warm glow," Journal of Public Economics, Elsevier, vol. 67(2), pages 269-284, February.
  2. Benny Moldovanu & Aner Sela & Xianwen Shi, 2007. "Contests for Status," Journal of Political Economy, University of Chicago Press, vol. 115, pages 338-363.
  3. Yeon-Koo Che & Ian Gale, 1998. "Caps on Political Lobbying," Microeconomics 9809003, EconWPA.
  4. Alpizar, Francisco & Carlson, Fredrik & Johansson-Stenman, Olof, 2008. "Anonymity, Reciprocity, and Conformity: Evidence from Voluntary Contributions to a National Park in Costa Rica," Discussion Papers dp-08-03-efd, Resources For the Future.
  5. 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.
  6. Harbaugh, William T, 1998. "The Prestige Motive for Making Charitable Transfers," American Economic Review, American Economic Association, vol. 88(2), pages 277-82, May.
  7. Edward Cartwright & Amrish Patel, 2010. "Public Goods, Social Norms, and Naïve Beliefs," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(2), pages 199-223, 04.
  8. Glazer, Amihai & Konrad, Kai A, 1996. "A Signaling Explanation for Charity," American Economic Review, American Economic Association, vol. 86(4), pages 1019-28, September.
  9. 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.
  10. Allan Drazen & Nuno Limão & Thomas Stratman, 2004. "Political Contribution Caps and Lobby Formation: Theory and Evidence," NBER Working Papers 10928, National Bureau of Economic Research, Inc.
  11. Kyung Baik, 2008. "Contests with group-specific public-good prizes," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(1), pages 103-117, January.
  12. Arieh Gavious & Benny Moldovanu & Aner Sela, 2002. "Bid Costs and Endogenous Bid Caps," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 709-722, Winter.
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