Transaction Costs, the Opportunity Cost of Time and Inertia in Charitable Giving
Knowles, Stephen; Servátka, Maroš

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Knowles, S., & Servátka, M. (2014). Transaction Costs, the Opportunity Cost of Time and Inertia in Charitable Giving (Economics Discussion Papers Series No. 1401). University of Otago. Retrieved from http://hdl.handle.net/10523/4571
Permanent link to OUR Archive version:
http://hdl.handle.net/10523/4571
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.
Date:
2014-01
Publisher:
University of Otago
Series number:
1401
ISSN:
1178-2293 (Online)
Keywords:
charitable giving; Dictator Game; transaction costs; opportunity cost of time; inertia
Research Type:
Discussion Paper
Languages:
English
Collections
- Economics [316]
- Discussion Paper [439]
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