Economic Analysis of Charitable Donations

Authors

Moon Young Kang, KAIST College of Business, Seoul, KoreaFollow
Byungho Park, KAIST College of Business, Seoul, KoreaFollow
Sanghak Lee, University of Iowa, Iowa City, Iowa, USAFollow
Jaehwan Kim, Korea University Business School, Seoul, KoreaFollow
Greg Allenby, Ohio State University, Columbus, Ohio, USAFollow

Keywords

direct utility model, hierarchical Bayes, altruism, non-profit marketing

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.

Recommended Citation

Young Kang, M., Park, B., Lee, S., Kim, J., & Allenby, G. (2016). Economic Analysis of Charitable Donations. Journal of Marketing and Consumer Behaviour in Emerging Markets, 2016(2), 40-57. https://doi.org/10.7172/2449-6634.jmcbem.2016.2.3

First Page

40

Last Page

57

Page Count

17

DOI

10.7172/2449-6634.jmcbem.2016.2.3

Publisher

University of Warsaw

Publication Date

2016-12-20