Social distance and quality ratings in charity choice

• Published in: Journal of behavioral and experimental economics Vol. 66; pp. 9 - 15
• Main Authors: Brown, Alexander L., Meer, Jonathan, Williams, J. Forrest
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier Inc 01.02.2017; Elsevier Science Ltd
• Subjects: Altruism; Charitable giving; Charities; Community organizations; Donations; Experiments; Philanthropy; Quality ratings; Social distance; Social identity; Social interest; Studies; Third party; United States > US; Quality ratings; Social distance; Philanthropy; Altruism; Charitable giving; Experiments
• ISSN: 2214-8043; 2214-8051
• DOI: 10.1016/j.socec.2016.04.006

•An experiment tests how third-party rating impacts charity choice and donations.•Subjects perform an effort task where earnings may go to a charity they pre-select.•We vary whether third-party ratings are presented before subjects make this choice.•Subjects are more likely to choose charities rated by third parties.•Subjects do not demonstrate a preference for local charities. We conduct a laboratory experiment to examine how third-party ratings impact charity choice and donative behavior, particularly in regards to preferences for local charities. Subjects are given a menu of ten charities, with a mix of local and non-local organizations included. We vary whether third-party ratings are displayed on this menu. Subjects perform an effort task to earn money and can choose to donate to their selected charity. We find evidence that subjects’ choice of charity is impacted by third-party evaluations but, somewhat surprisingly, there are no obvious preferences for local charities. These third-party assessments have some impact on the percent of earnings that subjects allocate to their selected charity; local charities also accrue more donations, though these results are imprecise.