Dimensions of donation preferences: the structure of peer and income effects

Michalis Drouvelis; Benjamin M. Marx

doi:10.1007/s10683-020-09661-z

Dimensions of donation preferences: the structure of peer and income effects

Michalis Drouvelis, Benjamin M. Marx

Research output: Contribution to journal › Article › peer-review

Abstract

Charitable donations provide positive externalities and can potentially be increased with an understanding of donor preferences. We obtain a uniquely comprehensive characterization of donation motives using an experiment that varies treatments between and within subjects. Donations are increasing in peers’ donations and past subjects’ donations. These and other results suggest a model of heterogeneous beliefs about the social norm for giving. Estimation of such a model reveals substantial heterogeneity in subjects’ beliefs about and adherence to the norm. A simple fundraising strategy increases donations by an estimated 30% by exploiting previously unstudied correlations between dimensions of donor preferences.

Original language	English (US)
Pages (from-to)	274-302
Number of pages	29
Journal	Experimental Economics
Volume	24
Issue number	1
DOIs	https://doi.org/10.1007/s10683-020-09661-z
State	Published - Mar 2021

Keywords

Altruism
Charitable
Donation
Experiment
Peer effects
Social preferences
Warm glow

ASJC Scopus subject areas

Economics, Econometrics and Finance (miscellaneous)

Online availability

10.1007/s10683-020-09661-z

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title = "Dimensions of donation preferences: the structure of peer and income effects",

abstract = "Charitable donations provide positive externalities and can potentially be increased with an understanding of donor preferences. We obtain a uniquely comprehensive characterization of donation motives using an experiment that varies treatments between and within subjects. Donations are increasing in peers{\textquoteright} donations and past subjects{\textquoteright} donations. These and other results suggest a model of heterogeneous beliefs about the social norm for giving. Estimation of such a model reveals substantial heterogeneity in subjects{\textquoteright} beliefs about and adherence to the norm. A simple fundraising strategy increases donations by an estimated 30% by exploiting previously unstudied correlations between dimensions of donor preferences.",

keywords = "Altruism, Charitable, Donation, Experiment, Peer effects, Social preferences, Warm glow",

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N2 - Charitable donations provide positive externalities and can potentially be increased with an understanding of donor preferences. We obtain a uniquely comprehensive characterization of donation motives using an experiment that varies treatments between and within subjects. Donations are increasing in peers’ donations and past subjects’ donations. These and other results suggest a model of heterogeneous beliefs about the social norm for giving. Estimation of such a model reveals substantial heterogeneity in subjects’ beliefs about and adherence to the norm. A simple fundraising strategy increases donations by an estimated 30% by exploiting previously unstudied correlations between dimensions of donor preferences.

AB - Charitable donations provide positive externalities and can potentially be increased with an understanding of donor preferences. We obtain a uniquely comprehensive characterization of donation motives using an experiment that varies treatments between and within subjects. Donations are increasing in peers’ donations and past subjects’ donations. These and other results suggest a model of heterogeneous beliefs about the social norm for giving. Estimation of such a model reveals substantial heterogeneity in subjects’ beliefs about and adherence to the norm. A simple fundraising strategy increases donations by an estimated 30% by exploiting previously unstudied correlations between dimensions of donor preferences.

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KW - Charitable

KW - Donation

KW - Experiment

KW - Peer effects

KW - Social preferences

KW - Warm glow

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Dimensions of donation preferences: the structure of peer and income effects

Abstract

Keywords

ASJC Scopus subject areas

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