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Seminar  |  23.10.2018  |  12:00

Brown Bag-Seminar: Is Time on Our Side? On the Benefits of Committing to Charities

12.00 - 13.30 Uhr, Marina Chugunova (Max-Planck-Institut für Innovation und Wettbewerb)

Max-Planck-Institut für Innovation und Wettbewerb, München, Raum 313

In this paper, we consider how the timing of a donation decision relative to the production of disposable income affects charitable giving. In a real-effort laboratory experiment with a subsistence income constraint, we study the willingness to donate, the amounts donated as well as the change in labor supply of donors triggered by giving. We find that more people donate if the decision to donate is made before production as a binding pledge. We elaborate on the mechanism that channels the increase in performance. Our results suggest that a commitment to giving is a viable strategy for raising charitable funds. (joint with Andreas Nicklisch and Kai-Uwe Schnapp)