Effectiveness of Charitable Lottery Design: Experimental Evidence from the Czech Republic and Russia
Effectiveness of Charitable Lottery Design: Experimental Evidence from the Czech Republic and Russia

Summary/Abstract: The paper presents the results of a multicultural economic experiment executed in the Czech Republic and Russia. The experiment was focused on studying the behaviour of economic agents in a situation simulating a charitable lottery. From Dale’s (2004) experimental design, we adopted the fixed-prize lottery (raffle) structure, in which tickets are sold for chances of winning a prize. This means that the more tickets one buys, the higher probability to win he gains. We introduced a new scheme – the modified fixed-prize lottery - within which the chance of winning was equal for all contributing individuals. Our results show that such a structure is not effective, that is, that individuals contribute considerably less under the modified fixed-prize lottery than under the classic raffle.

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