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American Economic Review: Vol. 100 No. 3 (June 2010)

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Is a Donor in Hand Better Than Two in the Bush? Evidence from a Natural Field Experiment

Article Citation

Landry, Craig E., Andreas Lange, John A. List, Michael K. Price, and Nicholas G. Rupp. 2010. "Is a Donor in Hand Better Than Two in the Bush? Evidence from a Natural Field Experiment." American Economic Review, 100(3): 958-83.

DOI: 10.1257/aer.100.3.958

Abstract

This study examines why people initially give to charities, why they remain committed to the cause, and what factors attenuate these influences. Using an experimental design that links donations across distinct treatments separated in time, we present several results. For example, previous donors are more likely to give, and contribute more, than other donor types. Yet, how previous donors were acquired is critical: agents initially attracted by an economic mechanism are more likely to continue giving than agents attracted by a nonmechanism factor. From a methodological viewpoint, our study showcases the benefit of moving beyond an experimental design that focuses on short-run substitution effects. (JEL C93, D64, D82, H41, L31, Z12)

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Authors

Landry, Craig E. (East Carolina U)
Lange, Andreas (U MD)
List, John A. (U Chicago)
Price, Michael K. (U TN)
Rupp, Nicholas G. (East Carolina U)

JEL Classifications

C93: Field Experiments
D64: Altruism
D82: Asymmetric and Private Information
H41: Public Goods
L31: Nonprofit Institutions; NGOs
Z12: Cultural Economics: Religion


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