The effect of recommended contributions in the voluntary provision of public goods

Rachel Croson, Melanie Marks

Research output: Contribution to journalArticlepeer-review

35 Scopus citations

Abstract

Recommended contributions are often observed in fundraising campaigns for charitable and other public goods. We present an experiment investigating the impact of recommended contributions in a voluntary threshold public goods process. We find that when valuations for the public good are heterogeneous, recommended contributions significantly increase the likelihood of efficient provision, although when valuations are homogeneous, the effect of recommendations is less compelling. This article represents a first step in understanding recommended contributions and other nonbinding, cheap-talk announcements in public goods provision and charitable contributions.

Original languageEnglish (US)
Pages (from-to)238-249
Number of pages12
JournalEconomic Inquiry
Volume39
Issue number2
DOIs
StatePublished - Apr 1 2001
Externally publishedYes

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