Inter-charity competition under spatial differentiation: Sorting, crowding, and spillovers

Carlo Gallier; Timo Goeschl; Martin  Kesternich; Johannes Lohse; Christiane Reif; Daniel Roemer

doi:10.1016/j.jebo.2023.10.013

Inter-charity competition under spatial differentiation: Sorting, crowding, and spillovers

Carlo Gallier, Timo Goeschl, Martin Kesternich, Johannes Lohse^*, Christiane Reif, Daniel Roemer

^*Corresponding author for this work

Economics

Research output: Contribution to journal › Article › peer-review

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Abstract

We study spatially differentiated competition between charities in a framed field experiment. We introduce spatial differentiation by varying the observability of charities’ location such that each donor faces a socially close ‘home’ and a socially distant ‘away’ charity. In our field setting, we observe spatially differentiated competition between charities offering the same good to be characterized by sorting, crowding-in, and an absence of spill-overs: Donors sort themselves by distance; fundraising (through matching) for one charity raises checkbook giving to that charity, irrespective of spatial distance; but checkbook giving to the unmatched charity is not affected.

Original language	English
Pages (from-to)	457-468
Number of pages	12
Journal	Journal of Economic Behavior & Organization
Volume	216
Early online date	2 Nov 2023
DOIs	https://doi.org/10.1016/j.jebo.2023.10.013
Publication status	Published - Dec 2023

Bibliographical note

Acknowledgments:
We would like to thank John List, Michael Price, Kimberly Scharf as well as conference and seminar audiences at the ESA meetings in Berlin and Manchester, the Science of Philanthropy Initiative Conference in Indianapolis, the Recent Advances in the Economics of Philanthropy Workshop, the University of Birmingham, the London School of Economics and Political Sciences, the University of Innsbruck, the University of Marburg, the University of Montpellier, Newcastle University, and the University of Stirling for very helpful comments. We are grateful to Raphael Epperson for valuable research assistance. Financial support by the German Federal Ministry of Education and Research (FKZ 01UT1411A) is gratefully acknowledged.

Keywords

Altruism
Public goods
Charitable giving
Social distance
Framed field experiment
Competition

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Cite this

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title = "Inter-charity competition under spatial differentiation: Sorting, crowding, and spillovers",

abstract = "We study spatially differentiated competition between charities in a framed field experiment. We introduce spatial differentiation by varying the observability of charities{\textquoteright} location such that each donor faces a socially close {\textquoteleft}home{\textquoteright} and a socially distant {\textquoteleft}away{\textquoteright} charity. In our field setting, we observe spatially differentiated competition between charities offering the same good to be characterized by sorting, crowding-in, and an absence of spill-overs: Donors sort themselves by distance; fundraising (through matching) for one charity raises checkbook giving to that charity, irrespective of spatial distance; but checkbook giving to the unmatched charity is not affected.",

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author = "Carlo Gallier and Timo Goeschl and Martin Kesternich and Johannes Lohse and Christiane Reif and Daniel Roemer",

note = "Acknowledgments: We would like to thank John List, Michael Price, Kimberly Scharf as well as conference and seminar audiences at the ESA meetings in Berlin and Manchester, the Science of Philanthropy Initiative Conference in Indianapolis, the Recent Advances in the Economics of Philanthropy Workshop, the University of Birmingham, the London School of Economics and Political Sciences, the University of Innsbruck, the University of Marburg, the University of Montpellier, Newcastle University, and the University of Stirling for very helpful comments. We are grateful to Raphael Epperson for valuable research assistance. Financial support by the German Federal Ministry of Education and Research (FKZ 01UT1411A) is gratefully acknowledged.",

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doi = "10.1016/j.jebo.2023.10.013",

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AU - Gallier, Carlo

AU - Goeschl, Timo

AU - Kesternich, Martin

AU - Lohse, Johannes

AU - Reif, Christiane

AU - Roemer, Daniel

N1 - Acknowledgments: We would like to thank John List, Michael Price, Kimberly Scharf as well as conference and seminar audiences at the ESA meetings in Berlin and Manchester, the Science of Philanthropy Initiative Conference in Indianapolis, the Recent Advances in the Economics of Philanthropy Workshop, the University of Birmingham, the London School of Economics and Political Sciences, the University of Innsbruck, the University of Marburg, the University of Montpellier, Newcastle University, and the University of Stirling for very helpful comments. We are grateful to Raphael Epperson for valuable research assistance. Financial support by the German Federal Ministry of Education and Research (FKZ 01UT1411A) is gratefully acknowledged.

PY - 2023/12

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N2 - We study spatially differentiated competition between charities in a framed field experiment. We introduce spatial differentiation by varying the observability of charities’ location such that each donor faces a socially close ‘home’ and a socially distant ‘away’ charity. In our field setting, we observe spatially differentiated competition between charities offering the same good to be characterized by sorting, crowding-in, and an absence of spill-overs: Donors sort themselves by distance; fundraising (through matching) for one charity raises checkbook giving to that charity, irrespective of spatial distance; but checkbook giving to the unmatched charity is not affected.

AB - We study spatially differentiated competition between charities in a framed field experiment. We introduce spatial differentiation by varying the observability of charities’ location such that each donor faces a socially close ‘home’ and a socially distant ‘away’ charity. In our field setting, we observe spatially differentiated competition between charities offering the same good to be characterized by sorting, crowding-in, and an absence of spill-overs: Donors sort themselves by distance; fundraising (through matching) for one charity raises checkbook giving to that charity, irrespective of spatial distance; but checkbook giving to the unmatched charity is not affected.

KW - Altruism

KW - Public goods

KW - Charitable giving

KW - Social distance

KW - Framed field experiment

KW - Competition

U2 - 10.1016/j.jebo.2023.10.013

DO - 10.1016/j.jebo.2023.10.013

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EP - 468

JO - Journal of Economic Behavior & Organization

JF - Journal of Economic Behavior & Organization

ER -

Inter-charity competition under spatial differentiation: Sorting, crowding, and spillovers

Abstract

Bibliographical note

Keywords

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