Can group giving boost contribution? Effects of different subsidy schemes in a laboratory experiment

Shigeharu Okajima (), Yukihiko Funaki (), Hiroko Okajima and Nobuyuki Uto
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Shigeharu Okajima: Kobe University
Hiroko Okajima: Towson University

No 1715, Working Papers from Waseda University, Faculty of Political Science and Economics

Abstract: Charitable giving is sometimes made collectively by a group of people. This form of philanthropy, called group giving, is gaining popularity in practice, but little has been studied in literature. Accordingly, a laboratory experiment is conducted to examine how group giving reacts to different rebate subsidies that are awarded based on the collective giving level of a group. The results show that group giving is particulary effective in boosting a giving rate in a stepwise rebate scheme. A stepwise rebate seems to encourage major contributors to contribute even more so that a rebate threshold is crossed for sure. In contrast, group giving slightly drives down a giving rate in a proportional rebate scheme. These results provide useful information for charitable organizations to develop a new intervention to increase charitable giving. This study also supplements the existing literature by providing empirical results on group giving.

Keywords: donation; laboratory experiment; group behavior; rebate scheme; electricity (search for similar items in EconPapers)
JEL-codes: C91 D91 Q48 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2017-09
New Economics Papers: this item is included in nep-exp
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