2009 Discussion Papers
School of Economics Discussion Paper 09/24
Does category reporting increase donations to charity?
A signalling game approach.
Edward Cartwright¹ and Amrish Patel²
¹ School of Economics, University of Kent, Canterbury, Kent, CT2 7NP, UK
² Department of Economics, University of Gothenburg, Box 640, SE 405 30, Gothenburg, Sweden.
Many charities report donations using categories. We question whether such category reporting increases donations in a signalling game where a donor is either generous or not generous. Conditions are derived under which category reporting will increase giving or decrease giving. Category reporting will increase giving if the probability a donor is generous is low and/or donor preferences depend a lot on type.
JEL Classification: C72, H41.
Keywords: Public good, charity, category reporting, signalling
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