Sorting into Incentives for Prosocial Behavior

75 Pages Posted: 25 Oct 2017 Last revised: 10 Oct 2018

See all articles by Christian Meyer

Christian Meyer

European University Institute - Economics Department (ECO)

Egon Tripodi

European University Institute - Economics Department (ECO); University of Bonn - Department of Economics

Date Written: October 5, 2018

Abstract

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

Suggested Citation

Meyer, Christian and Tripodi, Egon, Sorting into Incentives for Prosocial Behavior (October 5, 2018). Available at SSRN: https://ssrn.com/abstract=3058195 or http://dx.doi.org/10.2139/ssrn.3058195

Christian Meyer

European University Institute - Economics Department (ECO)

Villa La Fonte
Via delle Fontanelle 18
San Domenico di Fiesole, FI 50014
Italy

HOME PAGE: http://www.eui.eu/eco

Egon Tripodi (Contact Author)

European University Institute - Economics Department (ECO) ( email )

Via delle Fontanelle, 18
Firenze (Florence), Tuscany 50014
Italy

University of Bonn - Department of Economics ( email )

Bonn
Germany

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