Arbeitspapier

Defaults and donations: Evidence from a field experiment

We study how website defaults affect consumer behavior in the domain of charitable giving. In a field experiment that was conducted on a large platform for making charitable donations over the web, we exogenously vary the default options in two distinct choice dimensions. The first pertains to the primary donation decision, namely, how much to contribute to the charitable cause. The second relates to an "add-on" decision of how much to contribute to supporting the online platform itself. We find a strong impact of defaults on individual behavior: in each of our treatments, the modal positive contributions in both choice dimensions invariably correspond to the specified default amounts. Defaults, nevertheless, have no impact on aggregate donations. This is because defaults in the donation domain induce some people to donate more and others to donate less than they otherwise would have. In contrast, higher defaults in the secondary choice dimension unambiguously induce higher contributions to the online platform.

Language
Englisch

Bibliographic citation
Series: SFB/TR 15 Discussion Paper ; No. 515

Classification
Wirtschaft
Field Experiments
Altruism; Philanthropy; Intergenerational Transfers
Subject
Default Options
Online Platforms
Charitable Giving
Field Experiment

Event
Geistige Schöpfung
(who)
Altmann, Steffen
Falk, Armin
Heidhues, Paul
Jayaraman, Rajshri
Event
Veröffentlichung
(who)
Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
(where)
München
(when)
2015

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Altmann, Steffen
  • Falk, Armin
  • Heidhues, Paul
  • Jayaraman, Rajshri
  • Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)

Time of origin

  • 2015

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