The effect of recommended contributions in the voluntary provision of public goods

Citation
R. Croson et M. Marks, The effect of recommended contributions in the voluntary provision of public goods, ECON INQ, 39(2), 2001, pp. 238-249
Citations number
28
Categorie Soggetti
Economics
Journal title
ECONOMIC INQUIRY
ISSN journal
00952583 → ACNP
Volume
39
Issue
2
Year of publication
2001
Pages
238 - 249
Database
ISI
SICI code
0095-2583(200104)39:2<238:TEORCI>2.0.ZU;2-1
Abstract
Recommended contributions are often observed in fundraising campaigns for c haritable and other public goods. We present an experiment investigating ri te impact of recommended contributions in a voluntary threshold public good s process. We find that when valuations for the public good are heterogeneo us recommended contributions significantly increase the likelihood of effic ient provision, although when valuations are homogeneous, the effect of rec ommendations is less compelling. This article represents a first step in un derstanding recommended contributions and other nonbinding, cheap-talk anno uncements in public goods provision and charitable contributions.