Inefficient but effective? A field experiment on the effectiveness of direct and indirect transfer mechanism

Arbeitspapier

We conduct a field experiment on direct and indirect transfer mechanisms. It shows that people are willing to donate significantly more if the donation is indirect, i.e., it is tied to the purchase of a good with a price premium, rather than made directly. This points to an efficiencyeffectiveness tradeoff even though indirect donations are less efficient than direct donations, they are more effective in mobilizing resources. Our findings hold for Fair Trade coffee as well as for normal coffee. However, the strength of the efficiencyeffectiveness tradeoff is higher in the case of Fair Trade.

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• Language: Englisch

References and Relationships

• Bibliographic citation: Series: MAGKS Joint Discussion Paper Series in Economics ; No. 2008,02

Classification and Topics

• Classification: Wirtschaft ; Field Experiments ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Altruism; Philanthropy; Intergenerational Transfers ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Public Goods
• Subject: Tied transfers ; donations ; charity ; efficiency versus effectiveness ; fair trade

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Koppel, Hannes ; Schulze, Günther G.
• Event: Veröffentlichung
• (who): Philipps-University Marburg, Faculty of Business Administration and Economics
• (where): Marburg
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/30078