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Isolating Warm Glow in Charitable Auction Giving

Author

Listed:
  • Remoundou, Kyriaki
  • Drichoutis, Andreas C.
  • Koundouri, Phoebe

Abstract

We use a novel experimental design to isolate warm glow and measure its extent in an auction that contributes the revenues by highest bidders to a charity. A sample of consumers bid to upgrade an agricultural product from a river basin that is not in good ecological status. Charitable donations are crowed-out, one to one, by a reduction in the experimenters contribution to the charity allowing warm glow to be isolated. Results suggest that subjects do not bid higher in the charitable auction compared to the standard auction (control) treatment therefore providing no evidence of warm glow motivations behind giving.

Suggested Citation

  • Remoundou, Kyriaki & Drichoutis, Andreas C. & Koundouri, Phoebe, 2013. "Isolating Warm Glow in Charitable Auction Giving," MPRA Paper 122332, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122332
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    More about this item

    Keywords

    warm glow; charitable auctions; lab experiment;
    All these keywords.

    JEL classification:

    • Z1 - Other Special Topics - - Cultural Economics
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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