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Can group giving boost contribution? Effects of different subsidy schemes in a laboratory experiment

Author

Listed:
  • Shigeharu Okajima

    (Kobe University)

  • Yukihiko Funaki

    (Waseda University)

  • Hiroko Okajima

    (Towson University)

  • Nobuyuki Uto

Abstract

Charitable giving is sometimes made collectively by a group of people. This form of philanthropy, called group giving, is gaining popularity in practice, but little has been studied in literature. Accordingly, a laboratory experiment is conducted to examine how group giving reacts to different rebate subsidies that are awarded based on the collective giving level of a group. The results show that group giving is particulary effective in boosting a giving rate in a stepwise rebate scheme. A stepwise rebate seems to encourage major contributors to contribute even more so that a rebate threshold is crossed for sure. In contrast, group giving slightly drives down a giving rate in a proportional rebate scheme. These results provide useful information for charitable organizations to develop a new intervention to increase charitable giving. This study also supplements the existing literature by providing empirical results on group giving.

Suggested Citation

  • Shigeharu Okajima & Yukihiko Funaki & Hiroko Okajima & Nobuyuki Uto, 2017. "Can group giving boost contribution? Effects of different subsidy schemes in a laboratory experiment," Working Papers 1715, Waseda University, Faculty of Political Science and Economics.
  • Handle: RePEc:wap:wpaper:1715
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    More about this item

    Keywords

    donation; laboratory experiment; group behavior; rebate scheme; electricity;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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