Avoid Peer Information: Evidence from a Field Experiment of Charity Crowdfunding
43 Pages Posted: 12 Apr 2021 Last revised: 14 Apr 2021
Date Written: April 10, 2021
We study the behavior whereby an individual avoids peer information on charity giving. Manipulating the conditions of whether the peer donation information was revealed to potential donors based on a field experiment, we show information avoidance is ubiquitous, as 89% of individuals were “information avoiders.” Given the option to avoid the information, they were less likely to give and to help promote charity campaigns, which reduced the total distribution of campaigns on the platform by 8.4% and the total donation amount by 7.4%. We use a theoretical model to illustrate how the pressure from peer comparison may drive the findings.
Keywords: information avoidance, charity giving, crowdfunding, peer comparison, behavioral economics, field experiment
JEL Classification: C93, D82, D83, H41
Suggested Citation: Suggested Citation