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The impact of downward social information on contribution decisions

Published online by Cambridge University Press:  14 March 2025

Rachel Croson  and
Jen Yue Shang
Rachel Croson*
Affiliation:
EPPS and SOM, University of Texas at Dallas, 800 W. Campbell Drive, GR31, Richardson, TX 75080-3021, USA
Jen Yue Shang*
Affiliation:
Center on Philanthropy, Indiana University, 550 N. West Street, Suite 301, Indianapolis, IN 46202, USA
*
e-mail: [email protected]
e-mail: [email protected]
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Abstract

In this paper we study the effect of downward social information in contribution decisions to fund public goods. We describe the results of a field experiment run in conjunction with the fundraising campaigns of a public radio station. Renewing members are presented with social information (information about another donor's contribution) which is either above or below their previous (last year's) contribution. We find that respondents change their contribution in the direction of the social information; increasing their contribution when the social information is above their previous contribution, and decreasing their contribution when the social information is below. We hypothesize about the psychological motivations that may cause the results and test these hypotheses by comparing the relative size of the upward and downward shifts. These results improve our understanding of cooperation in public good provision and suggest differential costs and benefits to fundraisers in providing social information.

Keywords

Social influenceSocial informationSocial comparisonCharitable givingPublic goods

JEL classification

H41: Public Goods C93: Field Experiments C72: Noncooperative Games
Type
Research Article
Information
Experimental Economics , Volume 11 , Issue 3: Field experiments in economics with applications to the economics of charity , September 2008 , pp. 221 - 233
Copyright
Copyright © 2008 Economic Science Association

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