Transactions Costs In Charitable Giving: Evidence From Two Field Experiments

Huck, Steffen; Rasul, Imran, (2010). Transactions Costs In Charitable Giving: Evidence From Two Field Experiments. The B.E. Journal Of Economic Analysis & Policy, 10, 1, .

Keywords: field experiments, philanthropy


Type of evidence: Field-exp-charity

Related tools: Reduce transaction costs

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Paper summary


“Huck and Rasul conduct two experiments. In the first they assume that subjects who did not respond to an initial postal request to donate, but did respond to a reminder, responded to the reminder because it triggered a new draw from the same distribution of transaction costs (e.g., perhaps they were not as busy when the reminder letter arrived). There were a significant number of responses to the reminder letter, which Huck and Rasul argue implies the presence of transaction costs. … In Huck and Rasul's second experiment a solicitation letter is sent out for a separate fund raiser. Different treatments provide different payment options (a bank transfer versus a pre-filled bank transfer form or paying by credit card over the phone). When the transaction costs of donating were lower, the response rate was higher, but mean donations were not significantly different.” (summary in Knowles & S, 2015)


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This paper has been added by David Reinstein

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