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Merely increasing bids increases charitable donation.

Erika Weisz1, Mina Cikara1

  • 1Department of Psychology, Harvard University.

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PubMed
Summary
This summary is machine-generated.

Offering donors more choices, like multiple bids, significantly increases donation amounts. This strategy boosts giving without deterring potential donors, offering charities a simple way to enhance fundraising efforts.

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Area of Science:

  • Behavioral Economics
  • Prosocial Behavior
  • Choice Architecture

Background:

  • Understanding factors influencing charitable giving is crucial for effective fundraising.
  • Existing research explores various heuristics and biases affecting donation decisions.

Purpose of the Study:

  • To investigate how manipulating choice architecture, specifically by increasing the number of available bids, impacts donation behavior.
  • To determine if offering multiple donation options increases the total amount given.

Main Methods:

  • Conducted six online experiments with over 6,000 participants responding to single- or multiple-bid donation requests.
  • Performed a natural experiment with 10,000 donors to validate findings in a real-world setting.

Main Results:

  • Presenting multiple bids increased both the intention to donate and the actual donation amount.
  • The effect on donation amount persisted and was not explained by common heuristics like 1/n or fairness.
  • A natural experiment showed a 19.7% average increase in donations when donors were presented with multiple bids.

Conclusions:

  • Increasing the number of bids in donation requests is an effective strategy to enhance charitable giving.
  • This choice architecture manipulation offers practical insights for charities seeking to optimize fundraising.
  • Findings contribute to understanding prosocial behavior and decision-making in charitable contexts.