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Subsidizing Quantity Donations: Matches, Rebates, and Discounts Compared

Author

Listed:
  • Diederich, Johannes
  • Eckel, Catherine C.
  • Epperson, Raphael
  • Goeschl, Timo
  • Grossman, Philip J.

Abstract

We present online-experimental evidence that challenges the generalizability of established results on subsidizing giving by considering a "quantity donation" scheme. We define this scheme as one in which donors choose how many units of a charitable good to fund, rather than the amount of money to give. We find that different subsidy types are equally effective in raising funds. This contrasts with the common result of matches being superior to rebates. The finding masks a higher likelihood of giving under rebates and larger donations under matches and discounts. Our results emphasize the role of small changes in the donation environment.

Suggested Citation

  • Diederich, Johannes & Eckel, Catherine C. & Epperson, Raphael & Goeschl, Timo & Grossman, Philip J., 2019. "Subsidizing Quantity Donations: Matches, Rebates, and Discounts Compared," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203650, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc19:203650
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Charitable giving; subsidies; online field experiment; framing;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship

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