A Double-edged Sword: Using Public Recognition to Encourage Individual Charitable Giving. – Evidence from a Field Experiment in China
نویسندگان
چکیده
Previous research finds that individuals tend to donate more to charitable and non-profit organizations when their activities are publicly recognized. In this research, we find that public recognition may discourage individual giving in certain cases. We conducted a field experiment to investigate how public recognition influences individual charitable giving. We designed five schemes to recognize our donors and varied the timing when we offered the opportunity of public recognition. Results show that while public recognition encourages donors to give more, it crowds out small donations and thus lowers the participation rate. Compared to those cases where public recognition is not available until after donation, when subjects realize they will be recognized, some of them choose to donate more, but others choose to donate 0 rather than a small amount. Therefore, public recognition is a “double-edged sword” on individual charitable giving when this opportunity is offered before donation. JEL classification: C93; L31; H41; D64
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