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Experts bring economic tools to bear on philanthropic activities, addressing topics that range from the determinants of giving to the effectiveness of fundraising techniques. Economists are increasingly aware of the need to better understand philanthropic activities. In this book, economists address a variety of topics related to the economics of philanthropy, ranging from the determinants of giving to the effectiveness of fundraising techniques. The contributions focus on individual motives for giving and volunteering, and in particular how they affect donation outcomes, fundraising decisions, and public policies toward giving. Previous research has viewed motives for giving as embedded in formal models of economic behavior with rational agents who maximize their own utility while constrained by a budget. These models, however, have been shown to have poor predictive power, neglecting direct and indirect motives for giving. The contributors consider, among other subjects, the free-riding problem in these models; altruistic, direct, and indirect motives for giving, addressed both theoretically and with lab experiments; the linear public good game; the role of social information; the effectiveness of matching gifts and premiums; motives for unpaid volunteering; subscription models as a way to regulate revenue streams; and increasing reliance on public funds. Contributors James Andreoni, Jon Behar, Avner Ben-Ner, Ted Bergstrom, Greg Bose, Sarah Brown, Catherine C. Eckel, Christina Gravert, David H. Herberich, Samantha Horn, Fantingyu Hu, Dean Karlan, Ann-Kathrin Koessler, Benjamin M. Marx, Jonathan Meer, Michael Menietti, Bradley Minaker, Mark Ottoni-Wilhelm, A. Abigail Payne, Maria P. Recalde, Kimberley Scharf, Claudia Schwirplies, Marta Serra-Garcia, Sarah Smith, Karl Taylor, Mette Trier Damgaard, Lise Vesterlund, Laura Villalobos
Charities. --- Fund raising. --- BUSINESS/Social Responsibility --- ECONOMICS/Microeconomics
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We surveyed representative samples of Italian residents at three critical points in the COVID-19 pandemic, to test whether and how intentions to comply with social-isolation restrictions respond to the duration of their possible extension. Individuals reported being more likely to reduce, and less likely to increase, their self-isolation effort if negatively surprised by a given hypothetical extension (i.e., if the extension is longer than what they expected), whereas positive surprises had no impact. These results are consistent with reference-dependent preferences, with individual expectations serving as a reference point, and loss aversion. Our findings indicate that public authorities should carefully manage expectations about policy measures and account for behavioral reactions to deviations from previous announcements.
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