Comparing rebate and matching subsidies controlling for donors’ awareness: Evidence from the field
Catherine Eckel () and
Philip Grossman ()
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2017, vol. 66, issue C, 88-95
This paper compares the effectiveness of rebate and matching subsidies in the field and, to our knowledge, is the first to control for potential bias introduced by the failure to account for donors’ awareness of the offered subsidies. Where previous field experiments have typically been limited to either rebate subsidies or matching subsidies, we study both types and determine whether donors are aware of any offered subsidy. We provide evidence that this methodological shortcoming (i.e., the loss of control) is not trivial. Our findings suggest the assumption in earlier field studies, that the offered price is equal to the perceived or actual price, is likely incorrect and may result in underestimation of the price elasticities of giving. This set of results has strong implications for the design of effective subsidies in a variety of decision settings. In addition, our results serve to validate the lab studies’ finding that matching subsidies are more powerful than rebate subsidies of equivalent cost at increasing total giving to charities.
Keywords: Charitable giving; Field experiment; Subsidies (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:soceco:v:66:y:2017:i:c:p:88-95
Access Statistics for this article
Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) is currently edited by Ofer Azar
More articles in Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics) from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().