Arbeitspapier

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

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'.

Sprache
Englisch

Erschienen in
Series: Discussion Paper Series ; No. 2

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

Ereignis
Geistige Schöpfung
(wer)
Koppel, Hannes
Schulze, Günther G.
Ereignis
Veröffentlichung
(wer)
University of Freiburg, Department of International Economic Policy (iep)
(wo)
Freiburg i. Br.
(wann)
2008

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Koppel, Hannes
  • Schulze, Günther G.
  • University of Freiburg, Department of International Economic Policy (iep)

Entstanden

  • 2008

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