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

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 efficiency-effectiveness trade-off: 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 efficiency-effectiveness trade-off is higher in the case of 'Fair Trade'.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Paper Series ; No. 2

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): University of Freiburg, Department of International Economic Policy (iep)
• (where): Freiburg i. Br.
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/47893
• Last update: 10.03.2025, 11:44 AM CET