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Defaults and Donations: Evidence from a Field Experiment

Author

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  • Altmann, Steffen
  • Falk, Armin
  • Heidhues, Paul
  • Jayaraman, Rajshri

Abstract

We study how website defaults aff ect consumer behavior in the domain of charitable giving. In a field experiment that was conducted on a large platform for making charitable donations over the web, we exogenously vary the default options in two distinct choice dimensions. The first pertains to the primary donation decision, namely, how much to contribute to the charitable cause. The second relates to an "add-on" decision of how much to contribute to supporting the online platform itself. We find a strong impact of defaults on individual behavior: in each of our treatments, the modal positive contributions in both choice dimensions invariably correspond to the speci ed default amounts. Defaults, nevertheless, have no impact on aggregate donations. This is because defaults in the donation domain induce some people to donate more and others to donate less than they otherwise would have. In contrast, higher defaults in the secondary choice dimension unambiguously induce higher contributions to the online platform.

Suggested Citation

  • Altmann, Steffen & Falk, Armin & Heidhues, Paul & Jayaraman, Rajshri, 2015. "Defaults and Donations: Evidence from a Field Experiment," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113098, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc15:113098
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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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