Working Paper: NBER ID: w20182
Authors: Alexander L. Brown; Jonathan Meer; J. Forrest Williams
Abstract: We conduct a laboratory experiment to examine how third-party ratings impact charity choice and donative behavior, particularly in regards to preferences for local charities. Subjects are given a menu of ten charities, with a mix of local and non-local organizations included. We vary whether third-party ratings are displayed on this menu. Subjects perform an effort task to earn money and can choose to donate to their selected charity. We find evidence that subjects' choice of charity is impacted by third-party evaluations but, somewhat surprisingly, there are no obvious preferences for local charities. These third-party assessments have some impact on the percent of earnings that subjects allocate to their selected charity; local charities also accrue more donations, though these results are somewhat imprecise.
Keywords: charity choice; donative behavior; third-party ratings; local charities
JEL Codes: C91; D64; H41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Texas residency (H79) | Local charity selection (D64) |
| Local charities (D64) | Donations (D64) |
| Third-party ratings (G24) | Choice of charity (D64) |
| Third-party ratings (G24) | Donation behavior (D64) |