Transaction Costs, the Opportunity Cost of Time and Inertia in Charitable Giving

Type of content
Discussion / Working Papers
Publisher's DOI/URI
Thesis discipline
Degree name
Publisher
University of Canterbury. Department of Economics and Finance
Journal Title
Journal ISSN
Volume Title
Language
Date
2014
Authors
Knowles, S.
Servátka, M.
Abstract

We conduct a laboratory experiment to analyze the effect transactions costs and inertia have on charitable giving. We conjecture that transaction costs will have a greater effect on donations if the solicitation is received when the opportunity cost of time is high. Inertia could become a factor if people intend to give, but postpone making the payment until they have more time, and having postponed making the donation once, keep doing so. We find evidence of a transaction cost effect, with the size of this effect depending on the opportunity cost of time, but no statistically significant inertia effect.

Description
Citation
Knowles, S., Servátka, M. (2014) Transaction Costs, the Opportunity Cost of Time and Inertia in Charitable Giving. 44pp..
Keywords
Charitable giving, dictator game, transaction costs, opportunity cost of time, inertia.
Ngā upoko tukutuku/Māori subject headings
ANZSRC fields of research
Field of Research::14 - Economics
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