Rebate Subsidies, Matching Subsidies and Isolation Effects
In a series of recent experiments (Davis, Millner and Reilly, 2005, Eckel and Grossman, 2003, 2005a-c, 2006), matching subsidies generate significantly higher charity receipts than do theoretically equivalent rebate subsidies. This paper reports a laboratory experiment conducted to examine whether the higher receipts are attributable to a relative preference for matching subsidies or to an ‘isolation effect’ (McCaffery and Baron, 2003, 2006). Some potential policy implications of isolation effects on charitable contributions are also considered.
|Date of creation:||Jun 2006|
|Date of revision:|
|Publication status:||Published in Judgment and Decision-Making, 1, pages 13-22|
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