A Coordination Game Model of Charitable Giving and Seed Money Effect
نویسندگان
چکیده
If potential donors for a charity project possess the warm-glow properties in their preferences, we can represent their behavior with a coordination game. Accordingly, we construct a simultaneous incomplete information game model of charitable giving based on a simple global coordination game. We demonstrate that merely by the effect of seed money to shift the threshold requirement of the donations for project success downwards, the proportion of donors and the total amount of donations strictly and continuously increase with the amount of seed money. This result is partially compatible with the field experimental evidence in List and Lucking-Reiley [List, J. A., Lucking-Reiley, D., 2002. The Effects of Seed Money and Refunds on Charitable Giving: Experimental Evidence from a University Capital Campaign. Journal of Political Economy 110 (1), 215-233].
منابع مشابه
The Impact of Social Comparisons on Nonprofit Fundraising
Why individuals make charitable contributions and voluntarily provide public goods is an important question in modern society. Extensive research on voluntary contributions has been conducted by economists (Davis & Holt, 1993; Ledyard, 1995) and psychologists (Dawes, 1980). Many theories have been proposed to explain why individuals give (or cooperate) when it is in their own (financial) intere...
متن کاملThe Market for Charitable Giving
T hrough good and bad economic times, charitable gifts have continued to roll in largely unabated over the past half century. In a typical year, total charitable gifts of money now exceed 2 percent of gross domestic product. Moreover, charitable giving has nearly doubled in real terms since 1990, and the number of nonprofi t organizations registered with the IRS grew by nearly 60 percent from 1...
متن کاملPublic goods provision and redistributive taxation ¬リニ
This paper studies the relationship between redistributive taxation and tax-deductible charitable contributions. Redistribution has two opposite effects on voluntary giving. The price of charitable giving decreases with the degree of redistribution, and this has a positive effect on the total amount of giving (substitution effect). However, redistribution leads to lower consumption for the cont...
متن کاملDesigning of Supply Chain Coordination Mechanism with Leadership Considering (RESEARCH NOTE)
Abstract Vertical cooperative (co-op) advertising is typically a cost sharing mechanism and coordinated effort by the channel’s members in order to increase demand and overall profits. In this marketing strategy, the manufacturer shares a fraction of the retailer’s advertising investment. This paper studies the advertising and pricing decisions in a retailer-manufacturer supply chain in which...
متن کاملDoes the Origin of the Endowment Matter?
We investigate the effect of different origins of endowment in a charitable giving experiment. Our results show that money from non-research funds and earned endowment significantly decrease donations, but there are insignificant differences between genders.
متن کامل