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Paternalistic giving: Restricting recipient choice

Lata Gangadharan, Philip Grossman (), Kristy Jones and Christian Leister ()

Journal of Economic Behavior & Organization, 2018, vol. 151, issue C, 143-170

Abstract: We consider the relationship between paternalism and motives for giving and assess the role of donors’ perceptions of the recipient. We theoretically incorporate the tradeoffs introduced when donors may choose how a donation is realized, cash or in kind (i.e. paternalistically) and design an experiment to examine how differently motivated donors realize their giving. While donors of all types prefer in-kind donations, the extent of paternalism depends on the donor’s motivation for giving. Warm-glow givers are significantly less inclined to give paternalistically, supporting a form of warm glow that is independent of perceptions. Our findings pertain to fundraisers and policymakers.

Keywords: Warm glow; Altruism; Paternalism; Perceptions; Experiment (search for similar items in EconPapers)
JEL-codes: C91 D64 H40 (search for similar items in EconPapers)
Date: 2018
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Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

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Handle: RePEc:eee:jeborg:v:151:y:2018:i:c:p:143-170