 Matching Versus Raffles as a Fund‐Raising DeviceJournal of Public Economic Theory, 2025, vol. 27, issue 1 Abstract: Matching is a commonly used fund‐raising tactic, whereby small donors have their donation to a charity matched via a fund established by large donors. I developed a model in which a single large donor decides whether to establish a matching fund or contribute to the public good via the voluntary contributions mechanism (VCM). The credibility of the matching fund is an endogenous component of the model. For a match to be credible, the organizer must have a credible promise not to top up the contributions of the small donors. If the number of small donors is sufficiently large, there always exists a matching fund that is both credible and leads to a Pareto improvement relative to the VCM. When the matching fund needs to satisfy an endogenous credibility constraint, all of the outcomes that are eliminated due to this constraint are outcomes under which small donors are worse off relative to the VCM. The matching fund is also compared with a raffle mechanism. As the number of small donors grows large, public good provision under the two mechanisms converges. However, the matching function outperforms the raffle when there is a finite number of small donors. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:jpbect:v:27:y:2025:i:1:n:e70009 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.