To What Do People Contribute? Ongoing Operations vs. Sustainable Supplies

36 Pages Posted: 21 May 2019

See all articles by Yuval Arbel

Yuval Arbel

Technion-Israel Institute of Technology - Faculty of Architecture and Town Planning

Ronen Bar-El

Open University of Israel

Mordechai E. Schwarz

The Open University of Israel

Yossef Tobol

The Jerusalem College of Technology; The Carmel Academic Center

Abstract

We study how the objective of the contributions affects the willingness to contribute to real-life public goods. We conducted three treatments of a fundraising experiment among religious Jewish students in which the contributions were assigned to finance sustainable supplies and the ongoing operations of their campus synagogue. In each treatment, we informed the subject of the different allocation of their contributions between funding sustainable supplies and ongoing operations. The results show that contributions increase significantly with the share of contributions assigned to the procurement of sustainable supplies. We use the results to derive practical implications for the design of fundraising for public goods.

Keywords: experiment, Nash equilibrium, public goods, voluntary provision

JEL Classification: C73, C91, C92, H41

Suggested Citation

Arbel, Yuval and Bar-El, Ronen and Schwarz, Mordechai E. and Tobol, Yossef, To What Do People Contribute? Ongoing Operations vs. Sustainable Supplies. IZA Discussion Paper No. 12180, Available at SSRN: https://ssrn.com/abstract=3390167 or http://dx.doi.org/10.2139/ssrn.3390167

Yuval Arbel (Contact Author)

Technion-Israel Institute of Technology - Faculty of Architecture and Town Planning ( email )

Technion City
Haifa 32000
Israel

Ronen Bar-El

Open University of Israel ( email )

Mordechai E. Schwarz

The Open University of Israel ( email )

1 University Road
Ra'anana, 4353701
Israel

Yossef Tobol

The Jerusalem College of Technology ( email )

Jerusalem
Israel

HOME PAGE: http://www.jct.ac.il/he/tobol

The Carmel Academic Center ( email )

Haifa
Israel

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