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Auctions For Charity: The Curse Of The Familiar

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  • Jeffrey Carpenter
  • Damian S. Damianov
  • Peter Hans Matthews

Abstract

Auctions and raffles are commonly used to fund public goods. We run fundraising events in the field at the meetings of a well‐known service organization across the United States to examine the fundraising properties of five mechanisms: one that is common in the literature, two that are familiar to practitioners in the field, and two that are new. Consistent with a novel model assuming independent private attachments to the charity, we find large differences in the performance between the two most familiar formats, but these disparities are dwarfed by the differentials achieved using the new and less common formats.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:iecrev:v:63:y:2022:i:3:p:1109-1135
    DOI: 10.1111/iere.12559
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    6. Henrik Orzen, 2005. "Fundraising through Competition: Evidence from the Lab," Discussion Papers 2005-04, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    7. John Morgan, 2000. "Financing Public Goods by Means of Lotteries," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 761-784.
    8. John Morgan & Martin Sefton, 2000. "Funding Public Goods with Lotteries: Experimental Evidence," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 67(4), pages 785-810.
    9. Jeffrey Carpenter & Jessica Holmes & Peter Hans Matthews, 2008. "Charity auctions: a field experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 92-113, January.
    10. Jacob K. Goeree & Emiel Maasland & Sander Onderstal & John L. Turner, 2005. "How (Not) to Raise Money," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 897-926, August.
    11. Onderstal, Sander & Schram, Arthur J.H.C. & Soetevent, Adriaan R., 2013. "Bidding to give in the field," Journal of Public Economics, Elsevier, vol. 105(C), pages 72-85.
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