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Is a donor in hand better than two in the bush? Evidence from a natural field experiment

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Listed:
  • Craig Landry
  • Andreas Lange
  • John List
  • Michael Price
  • Nicholas Rupp

Abstract

This study develops theory and conducts an experiment to provide an understanding of why people initially give to charities, why they remain committed to the cause, and what factors attenuate these influences. Using an experimental design that links donations across distinct treatments separated in time, we present several insights. For example, we find that previous donors are more likely to give, and contribute more, than donors asked to contribute for the first time. Yet, how these previous donors were acquired is critical: agents who are initially attracted by signals of charitable quality transmitted via an economic mechanism are much more likely to continue giving than agents who were initially attracted by non-mechanism factors.

Suggested Citation

  • Craig Landry & Andreas Lange & John List & Michael Price & Nicholas Rupp, 2010. "Is a donor in hand better than two in the bush? Evidence from a natural field experiment," Artefactual Field Experiments 00077, The Field Experiments Website.
    • Handle: RePEc:feb:artefa:00077
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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