Abstract

http://ssrn.com/abstract=317688
 
 

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Citations (8)



 


 



The Economics of Donations and Enlightened Self-Interest


Andrea Buraschi


The University of Chicago; Imperial College Business School; Centre for Economic Policy Research (CEPR)

Francesca Cornelli


London Business School; Centre for Economic Policy Research (CEPR)

May 1, 2013


Abstract:     
This paper is an empirical study of what motivates individuals to donate to a charity. It is based on a unique dataset from the English National Opera (ENO) which includes detailed information on attendance and both granted and actually consumed bene…ts by all donors. We …nd that individuals clearly respond to incentives. However, only some individuals are motivated exclusively by private bene…ts. As the ENO advertises that donations are used to fund new productions, we …nd evidence that individuals are indeed willing to fund public goods, even though they could potentially free-ride. Moreover, we …nd that donors who attend special events or new productions develop a loyalty towards the charity and increase their donations over time. Finally, individuals are sensitive to social pressure and network connections. These results can help charities to refocus the design of their fund-raising campaigns.

Number of Pages in PDF File: 43

Keywords: Donations, altruism, charities, public good

JEL Classification: D1, D64, H41, L3

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Date posted: September 17, 2002 ; Last revised: May 15, 2013

Suggested Citation

Buraschi, Andrea and Cornelli, Francesca, The Economics of Donations and Enlightened Self-Interest (May 1, 2013). Available at SSRN: http://ssrn.com/abstract=317688 or http://dx.doi.org/10.2139/ssrn.317688

Contact Information

Andrea Buraschi
The University of Chicago ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
7738347123 (Phone)
HOME PAGE: http://www.andreaburaschi.com/

Chicago Booth School of Business Logo

Imperial College Business School ( email )
South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom
HOME PAGE: http://www.andreaburaschi.com/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Francesca Cornelli (Contact Author)
London Business School ( email )
Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom
+44 20 7262 5050 x3225 (Phone)
+44 20 7724 3317 (Fax)
HOME PAGE: http://www.lbs.ac.uk/faculty/fcornelli/
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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