Viral Altruism? Charitable Giving and Social Contagion in Online Networks
42 Pages Posted: 17 May 2014 Last revised: 30 Aug 2014
Date Written: May 15, 2014
How do social media affect the success of charitable fundraising? We use individual-level longitudinal data and experimental data from a social-media application that facilitates donations while broadcasting donors' activities to their contacts. We find that broadcasting is positively associated with donations, although some individuals appear to opportunistically broadcast a pledge, and then delete it. Furthermore, broadcasting a pledge is associated with more pledges by a user's contacts. However, results from a field experiment where broadcasting of the initial pledges was randomized suggest that the observational findings were likely due to homophily rather than genuine social contagion effects. The experiment also shows that, although our campaigns generated considerable attention in the forms of clicks and “likes,” only a small number of donations (30 out of 6.4 million users reached) were made. Finally, an online survey experiment showed that both the presence of an intermediary and a fee contributed to the low donation rate. Our findings suggest that online platforms for charitable giving may stimulate costless forms of involvement, but have a smaller impact on actual donations, and that network effects might be limited when it comes to contributing real money to charities. We also discuss broader insights from our study to understand motivations for charitable giving.
Keywords: online networks, diffusion, pro-social behavior, network effects
JEL Classification: C93, D64, O33, M31
Suggested Citation: Suggested Citation