Experimental Economics

, Volume 7, Issue 3, pp 217-234

First online:

Charitable Lottery Structure and Fund Raising: Theory and Evidence

  • Donald J. DaleAffiliated withMuhlenberg College

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Do fixed-prize charitable lotteries generate more net revenue than do revenue-dependent lotteries? I present the results of an experiment designed to test a theoretical prediction of the relationship between the prize structure of a lottery funding a public good and individuals' participation in the lottery. I find that a fixed-prize lottery configuration induces significantly greater participation and a significantly higher level of public good funding than does a revenue-dependent lottery.