Jonathan Berman London Business School Share of Wallet: Charity is easily crowded out by other discretionary expenses Impact: When push comes to shove, emotions trump welfare maximization (Berman et al., 2018)
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Jonathan Berman London Business School
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Jonathan BermanLondon Business School
Share of Wallet: Charity is easily crowded out by other discretionary expensesImpact: When push comes to shove, emotions trump welfare maximization (Berman et al., 2018)Barriers to Maximizing Social Welfare Via Charity 2How much would you donate to charity if you earned $50,000 per year? (N = 505)Current income Under $50,000 $500 Actual $125 Mary is thinking of donating to one of two charities. Charity A is local. Charity B is distant. She feels an emotional connection to local causes. Which charity should she donate to? Local Charity (60%)What charity does the most good? Distant Charity (69%) Jonathan Z. Berman
Harnessing Reputational Incentives to Create a “Culture of Giving”Observability increases cooperation better than material rewards (Kraft-Todd et al., 2015)However, there are strong norms against “public displays of generosity” No one likes a braggart (Berman et al., 2015)And we often derogate “do-gooders” (Minson & Monin, 2012)Still, there is hope: Creating A “Culture of Giving”3 Jonathan Z. Berman
Jonathan Berman London Business School - Description
Jonathan Berman London Business School Share of Wallet Charity is easily crowded out by other discretionary expenses Impact When push comes to shove emotions trump welfare maximization Berman et al 2018 ID: 772063 Download Presentation
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