Commitments to Give-if-you-Win Exceed Donations After a Win
Reinstein, D; Riener, G; Kellner, C
Date: 5 March 2018
Working Paper
Publisher
University of Exeter
Abstract
Should fundraisers ask a banker to donate “if he earns a bonus” or wait and ask after the bonus is known?
Standard EU theory predicts these are equivalent; loss-aversion and signaling models predict a larger commitment
before the bonus is known; theories of affect predict the reverse. In five experiments incorporating lab and ...
Should fundraisers ask a banker to donate “if he earns a bonus” or wait and ask after the bonus is known?
Standard EU theory predicts these are equivalent; loss-aversion and signaling models predict a larger commitment
before the bonus is known; theories of affect predict the reverse. In five experiments incorporating lab and field
elements (N=1363), we solicited donations from small lottery winnings , varying the conditionality of donations
between participants. Overall, we find conditional donations (“if you win”) exceeded ex-post donations. This
represents the first evidence on how pro-social behavior extends to conditional commitments over uncertain income,
with implications for charitable fundraising, giving pledges, and experimental methodology
Economics
Faculty of Environment, Science and Economy
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