Allocation Choice in Charitable Giving: A Natural Field Experiment

CERGE-EI Working Paper Series No. 747, March 2023

42 Pages Posted: 3 Apr 2023

See all articles by Theodor Kouro

Theodor Kouro

Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences

Date Written: March 12, 2023

Abstract

This study examines whether charitable giving increases if donors have more choice about how their donations are used. In a field experiment, employees of large Albanian companies were asked to donate to projects administered by Down Syndrome Albania. Treatments varied in whether participants were allowed (or forced) to choose between different projects, and in the amount of information they were given. Giving donors a choice substantially increased giving; information did not. Our setting allows us to consider various mechanisms that could underlie this behavior. We conclude that allocation choice mainly increases donations because donors can target projects they like.

Keywords: charitable giving, allocation choice, forced allocation, preferences, increased agency, information

JEL Classification: C90, C93, D46, D71, D83

Suggested Citation

Kouro, Theodor, Allocation Choice in Charitable Giving: A Natural Field Experiment (March 12, 2023). CERGE-EI Working Paper Series No. 747, March 2023, Available at SSRN: https://ssrn.com/abstract=4397398 or http://dx.doi.org/10.2139/ssrn.4397398

Theodor Kouro (Contact Author)

Charles University in Prague - CERGE-EI, a joint workplace of Charles University and the Economics Institute of the Czech Academy of Sciences ( email )

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