Sorting into Incentives for Prosocial Behavior
75 Pages Posted: 25 Oct 2017 Last revised: 10 Oct 2018
Date Written: October 5, 2018
We study incentivized voluntary contributions to charitable activities. Motivated by the market for blood donations in Germany, we consider a setting where different incentives coexist and agents can choose to donate without receiving monetary compensation. We use a model that interacts image concerns of agents with intrinsic and extrinsic incentives to donate. Laboratory results show that a collection system where compensation can be turned down can improve the efficiency of collection. Image effects and incentive effects do not crowd each other out. A significant share of donors turn down compensation. Heterogeneity in treatment effects suggests gender-specific preferences over signaling.
Keywords: Charitable Giving, Altruism, Incentives, Social Image, Laboratory Experiment
JEL Classification: H42, D64, C91, I18
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