Experimental Economics

, Volume 11, Issue 3, pp 221–233 | Cite as

The impact of downward social information on contribution decisions

Article

Abstract

In this paper we study the effect of downward social information in contribution decisions to fund public goods. We describe the results of a field experiment run in conjunction with the fundraising campaigns of a public radio station. Renewing members are presented with social information (information about another donor’s contribution) which is either above or below their previous (last year’s) contribution. We find that respondents change their contribution in the direction of the social information; increasing their contribution when the social information is above their previous contribution, and decreasing their contribution when the social information is below. We hypothesize about the psychological motivations that may cause the results and test these hypotheses by comparing the relative size of the upward and downward shifts. These results improve our understanding of cooperation in public good provision and suggest differential costs and benefits to fundraisers in providing social information.

Keywords

Social influence Social information Social comparison Charitable giving Public goods 

JEL

C72 C93 H41 

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Copyright information

© Economic Science Association 2008

Authors and Affiliations

  1. 1.EPPS and SOMUniversity of Texas at DallasRichardsonUSA
  2. 2.Center on PhilanthropyIndiana UniversityIndianapolisUSA

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