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Voluntary 'donations' versus reward-oriented 'contributions': two experiments on framing in funding mechanisms

Adena, Maja; Huck, Steffen; (2022) Voluntary 'donations' versus reward-oriented 'contributions': two experiments on framing in funding mechanisms. Experimental Economics , 25 (5) pp. 1399-1417. 10.1007/s10683-022-09759-6. Green open access

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Abstract

In an artefactual field experiment, we implemented a crowdfunding campaign for an institute’s summer party and compared donation and contribution framings. We found that the use of the word ‘donation’ generated higher revenue than the use of ‘contribution.’ While the individuals receiving the donation framing gave substantially larger amounts, those receiving the contribution framing responded more strongly to reward thresholds and suggestions. An additional survey experiment on MTurk indicated that the term ‘donation’ triggers more positive emotional responses and that emotions are highly correlated with giving. It appears that making a donation is perceived as a more voluntary act and is thus more successful at generating warm glow than making a contribution. We surmise that this extends to other funding mechanisms.

Type: Article
Title: Voluntary 'donations' versus reward-oriented 'contributions': two experiments on framing in funding mechanisms
Location: United States
Open access status: An open access version is available from UCL Discovery
DOI: 10.1007/s10683-022-09759-6
Publisher version: https://doi.org/10.1007/s10683-022-09759-6
Language: English
Additional information: © 2023 Springer Nature Switzerland AG. This article is licensed under a Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/).
UCL classification: UCL
UCL > Provost and Vice Provost Offices > UCL SLASH
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS
UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics
URI: https://discovery.ucl.ac.uk/id/eprint/10168623
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