Title:
An Experimental Test of Warm Glow Giving
Authors:
Heidi Crum
Philip J. Grossman
Reference:
Crum, Heidi and Philip J. Grossman(2008), "An Experimental Test of Warm Glow Giving", journal of public Economics, 92: 1011-1021
Abstract:
This paper reports the results of an experimental test of the warm glow hypothesis. A participant is presented with the opportunity to contribute from her own endowment to a charity of choice. The experiment is designed so that a pure altruist has no incentive to donate. The amount the designated charity will receive is preset; any contribution by the participant crowds out dollarfor-dollar giving by the proctor. We find that participants, on average, donated 20% of their endowments and that approximately 57% of the participants made a donation.