The following field experiment analyzes the effect of payments in a setting of shared social responsibility where charitable giving is incorporated into a pay-what-you-want scheme as a share of the payment. The field experiment involved free walking tours. Within a timeframe of 10 weeks, tours operated as usual, while every second week a Donation Week was implemented. During Donation Week, 5% of the tips were donated to a charitable organization by the tour firm. Results reveal that tips are significantly higher in the Donation Week compared to the Baseline and that the rise in tips roughly outweighs the cost of the donation payment. Thus, while tour guides’ profits do not differ between treatments donations to charity may be generated additionally in Donation Week.
We investigate whether revealing the identities in a public good game that includes a donation incentive leads to higher contributions to the public good. Previous evidence suggests that contributions to a public good increase significantly when these take place in public. Also, the amount of money given in charitable donations seems to be sensitive to the revealing of identities. Using a laboratory experiment, we implement a 20% donation share that is dependent on participants’ contributions to a public good. The donation is either costless (because it is financed by the experimenter) or deducted from a team’s contributions. In both settings, we explore whether informing participants that group members’ identities will be disclosed at the end of the experiment leads to higher contributions to the public good. Non-parametric statistics indicate that when donations are costly for the participants, the announcement of subsequent identity disclosure results in significantly higher contributions in the second half of the repeated public good game. In contrast, revealing identities in settings with costless donations reduces contributions to the public good significantly. The regression results indicate that conditional cooperators might be one subgroup driving these results.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.