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Economic Analysis of Charitable Donations
Economic Analysis of Charitable Donations

Author(s): Moon Young Kang, Byungho Park, Sanghak Lee, Jaehwan Kim, Greg Allenby
Subject(s): Social Sciences, Socio-Economic Research
Published by: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego
Keywords: direct utility model; hierarchical Bayes; altruism; non-profi t marketing

Summary/Abstract: This paper examines the effect of message characteristics on donation behavior using an economic model of giving. The utility of giving can come from one’s own contribution and possibly from the combined contributions of others. Donors are assumed to be constrained utility maximizers, and the message attributes affect the degree to which they react altruistically or egoistically. The model is estimated with data from an incentive-aligned study of South Korean consumers, and implications for message optimization and donor targeting are explored.

  • Issue Year: 4/2016
  • Issue No: 2
  • Page Range: 40-57
  • Page Count: 18
  • Language: English
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