Defaults and Donations: Evidence from a Field Experiment-Reference-Cited by-同舟云学术

Defaults and Donations: Evidence from a Field Experiment

Published:2019-12-01 Issue:5 Volume:101 Page:808-826
ISSN:0034-6535
Container-title:The Review of Economics and Statistics
language:en
Short-container-title:

Author:

Altmann Steffen¹,Falk Armin²,Heidhues Paul³,Jayaraman Rajshri⁴,Teirlinck Marrit⁵

Affiliation:

1. University of Copenhagen

2. Institute on Behavior and Inequality and University of Bonn

3. Düsseldorf Institute for Competition Economics

4. ESMT Berlin and University of Toronto

5. ESMT Berlin and Humboldt University

Abstract

Abstract We study the effects of defaults on charitable giving in a large-scale field experiment on an online fundraising platform. We exogenously vary default options along two choice dimensions: the charitable donation decision and the “co-donation” decision regarding how much to contribute to supporting the platform. We document a strong effect of defaults on individual behavior but nevertheless find that aggregate donation levels are unaffected by defaults. In contrast, co-donations increase in the default amount. We complement our experimental results with a structural model that investigates whether personalizing defaults based on individuals' donation histories can increase donation revenues.

Publisher

MIT Press - Journals

Subject

Economics and Econometrics,Social Sciences (miscellaneous)

Link

https://direct.mit.edu/rest/article-pdf/101/5/808/1982613/rest_a_00774.pdf

Reference38 articles.

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3. Adena, Maja, SteffenHuck, and ImranRasul, “Charitable Giving and Nonbinding Contribution-Level Suggestions: Evidence from a Field Experiment,” Review of Behavioral Economics1 (2014), 275–293.

4. Altmann, Steffen, ArminFalk, and AndreasGrunewald, “Incentives and Information as Driving Forces of Default Effects,” IZA discussion paper 7610 (2013).

5. Andreoni, James , “Philanthropy” (pp. 1201–1269), in SergeKolm and JeanYthier, eds., Handbook of the Economics of Giving, Altruism, and Reciprocity (Amsterdam: Elsevier, 2006).

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