Rebate Subsidies, Matching Subsidies and Isolation Effects

Douglas Davis

No 604, Working Papers from VCU School of Business, Department of Economics

Abstract: 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.

Keywords: experiments; charitable contributions; methodology (search for similar items in EconPapers)
JEL-codes: C91 D64 H24 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2006-06
New Economics Papers: this item is included in nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Published in Judgment and Decision-Making, 1, pages 13-22

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http://www.people.vcu.edu/~dddavis/papers/DAVIS2006CM.pdf (application/pdf)

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Journal Article: Rebate subsidies, matching subsidies and isolation effects (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:vcu:wpaper:0604

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