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Subsidizing unit donations: matches, rebates, and discounts compared

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An influential result in the literature on charitable giving is that matching subsidies dominate rebate subsidies in raising funds. We investigate whether this result extends to 'unit donation' schemes, a popular alternative form of soliciting donations. There, the donors' choices are...

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Bibliographic Details
Main Authors: Diederich, Johannes (Author) , Eckel, Catherine C. (Author) , Epperson, Raphael (Author) , Goeschl, Timo (Author) , Grossman, Philip Johnson (Author)
Format: Book/Monograph Working Paper
Language:English
Published: Heidelberg Heidelberg University, Department of Economics [2020]
Edition:This version: October 7, 2020
Series:AWI discussion paper series no. 697 (December 2020)
In: AWI discussion paper series (no. 697 (December 2020))

DOI:10.11588/heidok.00029236
Subjects:
Graue Literatur
Online Access:Verlag, kostenfrei: https://www.uni-heidelberg.de/md/awi/forschung/dp_697.pdf
Resolving-System, kostenfrei: https://doi.org/10.11588/heidok.00029236
Resolving-System, kostenfrei: http://hdl.handle.net/10419/235020
Resolving-System: https://nbn-resolving.org/urn:nbn:de:bsz:16-heidok-292365
Langzeitarchivierung Nationalbibliothek: https://d-nb.info/122450058X/34
Verlag, kostenfrei: http://www.ub.uni-heidelberg.de/archiv/29236
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Author Notes:Johannes Diederich, Catherine C. Eckel, Raphael Epperson, Timo Goeschl, Philip J. Grossman
Description
Summary:An influential result in the literature on charitable giving is that matching subsidies dominate rebate subsidies in raising funds. We investigate whether this result extends to 'unit donation' schemes, a popular alternative form of soliciting donations. There, the donors' choices are about the number of units of a charitable good to fund at a given unit price, rather than the amount of money to give. Comparing matches and rebates as well as simple discounts on the unit price, we find no evidence of dominance in our online experiment: The three subsidy types are equally effective overall. At a more disaggregate level, rebates lead to a higher likelihood of giving while matching and discount subsidies lead to larger donations by donors. This suggests that charities using a unit donation scheme enjoy additional degrees of freedom in choosing a subsidy type. Rebates merit additional consideration if the primary goal is to attract donors.
Physical Description:Online Resource
DOI:10.11588/heidok.00029236

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