Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 460: Paying the Price of Sweetening Your Donation - Evidence from a Natural Field Experiment

Francisco Alpízar () and Peter Martinsson ()
Additional contact information
Francisco Alpízar: Environment for Development Center for Central America, CATIE, Turrialba, Costa Rica
Peter Martinsson: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG

Abstract: Using a natural field experiment in a recreational site, a public good almost fully dependent on voluntary donations, we explored the crowding-out effect of gift rewards. First, we investigated whether receiving a map in appreciation of a donation crowded out prosocial behavior and found no significant effect of giving the map. Second, we explored the effect of adding the map to a treatment designed to increase donations. Interestingly, when the gift was combined with our attempt to trigger reputational and self image motives, the probability of donating decreased significantly, compared to the social reference treatment alone.

Keywords: Crowding-out; donation; natural field experiment; reciprocity

JEL-codes: C93; D10; D60; Q50

13 pages, August 5, 2010

Note: Published in Economics Letters, 2012, Vol 114, pp. 182-185.

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