How Can Bill and Melinda Gates Increase Other People’s Donations to Fund Public Goods? - Working Paper 292
The reasons why people give to charities vary from individual to individual, but it is clear that large, public gifts to a charity from well-known donors increase the number and size of smaller individual gifts. In this working paper, Dean Karlan and John A. List show that the effect has to do with overcoming the asymmetry of knowledge about the quality of the charity.
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