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Karlan, Dean, and
John A. List. 2007. "Does Price Matter in Charitable Giving? Evidence from a Large-Scale Natural Field Experiment."
,
97(5): 1774-1793.
Show Article Details
DOI: 10.1257/aer.97.5.1774
Abstract:We conducted a natural field experiment to further our understanding of the economics
of charity. Using direct mail solicitations to over 50,000 prior donors of a
nonprofit organization, we tested the effectiveness of a matching grant on charitable
giving. We find that the match offer increases both the revenue per solicitation and
the response rate. Larger match ratios (i.e., $3:$1 and $2:$1) relative to a smaller
match ratio ($1:$1) had no additional impact, however. The results provide avenues
for future empirical and theoretical work on charitable giving, cost-benefit analysis,
and the private provision of public goods. (JEL D64, L31)
Additional links:
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Link to Appendix
Authors:
Karlan, Dean (Yale University and MIT)
List, John A. (University of Chicago)
JEL Classifications:
D64: Altruism
L31: Nonprofit Institutions; NGOs
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