Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 522: How Category Reporting Can Improve Fundraising
Edward Cartwright () and Amrish Patel ()
Additional contact information
Edward Cartwright: Dept of Economics, University of Kent, Postal: Canterbury, Kent, UK CT2 7NP
Amrish Patel: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG, Sweden
Abstract: Many fundraisers report donations using categories such as more than £ 1000, more than £ 10,000 etc. One naturally wonders how we should categorise donations and whether category reporting can raise more funds than simple uncategorised reporting. To shed light on these questions, we employ a signalling game framework in which both the donor’s donation and his bene…ts of being in a higher category are determined endogenously.Our analysis suggests that categorised reporting can always improve fundraising. Indeed, we show that both a high and a low category threshold can increase donations. Categorised reporting, especially with a high threshold, can though also lead to the existence of a low donation equilibrium. Fundraisers may then have to choose between: a safer low threshold and a potentially more lucrative high threshold where they would also have to try to coordinate individuals on the desirable equilibrium.
Keywords: fundraising; category reporting; signalling
35 pages, January 4, 2012
Full text files
28266 HTML file
Questions (including download problems) about the papers in this series should be directed to Jessica Oscarsson ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:gunwpe:0522This page generated on 2024-11-14 18:33:27.