An experimental test of warm glow giving |
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Authors: | Heidi Crumpler Philip J Grossman |
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Institution: | 1. Department of Economics, Saint Cloud State University, St. Cloud, MN 56301, United States;2. Department of Economics, Saint Cloud State University, St. Cloud, MN 56301, 320-308-4232, United States |
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Abstract: | This paper reports the results of an experimental test of the warm glow hypothesis. A participant is presented with the opportunity to contribute from her own endowment to a charity of choice. The experiment is designed so that a pure altruist has no incentive to donate. The amount the designated charity will receive is preset; any contribution by the participant crowds out dollar-for-dollar giving by the proctor. We find that participants, on average, donated 20% of their endowments and that approximately 57% of the participants made a donation. |
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