Is a Donor in Hand Better than Two in the Bush? Evidence from a Natural Field Experiment

Craig Elliott Landry (), Andreas Lange (), John List (), Michael K. Price () and Nicholas G. Rupp

No 14319, NBER Working Papers from National Bureau of Economic Research, Inc

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.

JEL-codes: C93 H41 Q5 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp
Date: 2008-09
Note: EEE PE
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