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Charitable Lottery Structure and Fund Raising: Theory and Evidence

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  • Donald J. Dale

Abstract

Do fixed-prize charitable lotteries generate more net revenue than do revenue-dependent lotteries? I present the results of an experiment designed to test a theoretical prediction of the relationship between the prize structure of a lottery funding a public good and individuals' participation in the lottery. I find that a fixed-prize lottery configuration induces significantly greater participation and a significantly higher level of public good funding than does a revenue-dependent lottery.

Suggested Citation

  • Donald J. Dale, 2004. "Charitable Lottery Structure and Fund Raising: Theory and Evidence," Experimental Economics, Springer;Economic Science Association, vol. 7(3), pages 217-234, October.
    • Handle: RePEc:kap:expeco:v:7:y:2004:i:3:p:217-234
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    Citations

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    Cited by:

    1. Andrea Blasco & Olivia S. Jung & Karim R. Lakhani & Michael Menietti, 2016. "Motivating Effort In Contributing to Public Goods Inside Organizations: Field Experimental Evidence," NBER Working Papers 22189, National Bureau of Economic Research, Inc.
    2. Craig E. Landry & Andreas Lange & John A. List & Michael K. Price & Nicholas G. Rupp, 2006. "Toward an Understanding of the Economics of Charity: Evidence from a Field Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 121(2), pages 747-782.
    3. Deck, Cary & Murphy, James J., 2019. "Donors change both their level and pattern of giving in response to contests among charities," European Economic Review, Elsevier, vol. 112(C), pages 91-106.
    4. Carpenter, Jeffrey, 2021. "The shape of warm glow: Field experimental evidence from a fundraiser," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 555-574.
    5. Sebastian J. Goerg & John P. Lightle & Dmitry Ryvkin, 2016. "Priming The Charitable Pump: An Experimental Investigation Of Two-Stage Raffles," Economic Inquiry, Western Economic Association International, vol. 54(1), pages 508-519, January.
    6. Lange, Andreas & List, John A. & Price, Michael K., 2007. "A fundraising mechanism inspired by historical tontines: Theory and experimental evidence," Journal of Public Economics, Elsevier, vol. 91(9), pages 1750-1782, September.
    7. Carpenter, Jeffrey & Matthews, Peter Hans, 2017. "Using raffles to fund public goods: Lessons from a field experiment," Journal of Public Economics, Elsevier, vol. 150(C), pages 30-38.
    8. Paan Jindapon & Zhe Yang, 2020. "Free riders and the optimal prize in public‐good funding lotteries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 22(5), pages 1289-1312, September.
    9. Kent Grote & Victor Matheson, 2011. "The Economics of Lotteries: An Annotated Bibliography," Working Papers 1110, College of the Holy Cross, Department of Economics.
    10. Jeffrey Carpenter & Damian S. Damianov & Peter Hans Matthews, 2022. "Auctions For Charity: The Curse Of The Familiar," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(3), pages 1109-1135, August.
    11. Jiří Špalek & Zuzana Berná, 2011. "Threshold Effectiveness in Contributing to the Public Goods: Experiments Involving Czech Students," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(3), pages 250-267.
    12. Sánchez, Ángela, 2022. "Group identity and charitable contributions: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 542-549.

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