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Article
Why Charities Announce Donations: A Positive Perspective
Journal of Public Economics (2001)
  • Richard Romano, University of Florida
  • Huseyin Yildirim, Duke University
Abstract
Charities frequently announce contributions of donors as they accrue. Doing so induces donors to play a sequential-move rather than simultaneous-move game. We examine the conditions under which a charity prefers such sequential play. It is known that if donors only value contributions through their effect on the total provision of a public good, then the charity will not announce contributions sequentially. However, with more general utility functions that include additional effects such as warm-glow or snob appeal, the charity may benefit from announcing contributions.
Disciplines
Publication Date
2001
Citation Information
Richard Romano and Huseyin Yildirim. "Why Charities Announce Donations: A Positive Perspective" Journal of Public Economics Vol. 81 Iss. 3 (2001) p. 423 - 447
Available at: http://works.bepress.com/huseyin_yildirim/16/