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When Should the Ask Be a Nudge? The Effect of Default Amounts on Charitable Donations

Author : Indranil Goswami
Publisher :
Page : 0 pages
File Size : 19,71 MB
Release : 2016
Category :
ISBN :

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How does setting a donation option as the default in a charitable appeal affect people's decisions? In eight studies, comprising 11,508 participants making 2,423 donation decisions in both experimental settings and a large-scale natural field experiment, we investigate the effect of “choice-option” defaults on the donation rate, average donation amount, and the resulting revenue. We find (1) a “lower-bar” effect, where defaulting a low amount increases donation rate, (2) a “scale-back” effect where low defaults reduce average donation amounts and (3) a “default-distraction” effect, where introducing any defaults reduces the effect of other cues, such as positive charity information. Contrary to the view that setting defaults will backfire, defaults increased revenue in our field study. However, our findings suggest that defaults can sometimes be a “self-cancelling” intervention, with countervailing effects of default option magnitude on decisions and resulting in no net effect on revenue. We discuss the implications of our findings for research on fundraising specifically, for choice architecture and behavioral interventions more generally, as well as for the use of “nudges” in policy decisions.

Defaults and Donations

Author : Steffen Altmann
Publisher :
Page : 42 pages
File Size : 38,55 MB
Release : 2014
Category : Charities
ISBN :

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We study how website defaults affect consumer behavior in the domain of charitable giving. In a field experiment that was conducted on a large platform for making charitable donations over the web, we exogenously vary the default options in two distinct choice dimensions. The first pertains to the primary donation decision, namely, how much to contribute to the charitable cause. The second relates to an "add-on" decision of how much to contribute to supporting the online platform itself. We find a strong impact of defaults on individual behavior: in each of our treatments, the modal positive contributions in both choice dimensions invariably correspond to the specified default amounts. Defaults, nevertheless, have no impact on aggregate donations. This is because defaults in the donation domain induce some people to donate more and others to donate less than they otherwise would have. In contrast, higher defaults in the secondary choice dimension unambiguously induce higher contributions to the online platform.

Does Nudging Intentions Translate Into Action? Why Nudging Pledges to Charities Does Not Result in Increased Donations

Author : Alexia Gaudeul
Publisher :
Page : 32 pages
File Size : 50,80 MB
Release : 2017
Category :
ISBN :

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Recent evidence suggests that nudges, i.e. alterations in the decisional context, can have large effects on decisions and can improve individual and public welfare. This paper presents the results of a controlled experiment that was designed to evaluate not only the effectiveness of a default manipulation on decision making in a charity giving context, but also whether yielding or opposing a nudge affects attitudes, and whether nudging intentions (pledges) translate into behaviour (donations). The results show that while making pledges the default increased pledges, it did not increase donations because the nudge affected only participants who were close to indifference between pledging and not pledging and were thus unlikely to actually do the effort of translating their pledges into donations. Participants who were nudged to pledge pledged more often than participants who were nudged to keep, but they were less likely to maintain their participation in the experiment, and those who kept participating were less likely to pledge again. This, along with high attrition among nudged pledgers explains why nudging pledges did not result in higher actual donations. We interpret our findings in terms of a selection effect of nudges, and discuss practical implications of our experiment in terms of the applicability of default-based nudges as a tool for policy interventions.

The Irrational Consumer

Author : Enrico Trevisan
Publisher : Routledge
Page : 156 pages
File Size : 40,61 MB
Release : 2016-03-09
Category : Business & Economics
ISBN : 1317026950

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Companies of all kinds have fallen into some of the most fundamental of traps when it comes to consumer marketing; in assuming that the motivation that drives their customers is entirely rational. Enrico Trevisan's The Irrational Consumer builds on the ground breaking works on behavioural economics of authors such as Daniel Kahneman and Richard Thaler in order to explain the fundamental drivers of customer decisions and how to incorporate these into your business strategy. Learn how consumers respond to different offer architectures and discounts; why they sometimes struggle to see the wood for the trees in a world of ever-increasing options; what are the rules of thumb they develop for making sense of value. Behavioural economics offers organizations perspectives for engaging with customers, whose views on what to buy are strongly driven by contextual factors, such as the framework and the dynamics of choices. Enrico Trevisan's The Irrational Consumer is your 'must-have' primer to this world.

A Behavioral Economics Approach to Interactive Information Retrieval

Author : Jiqun Liu
Publisher : Springer Nature
Page : 220 pages
File Size : 41,82 MB
Release : 2023-02-17
Category : Computers
ISBN : 3031232291

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This book brings together the insights from three different areas, Information Seeking and Retrieval, Cognitive Psychology, and Behavioral Economics, and shows how this new interdisciplinary approach can advance our knowledge about users interacting with diverse search systems, especially their seemingly irrational decisions and anomalies that could not be predicted by most normative models. The first part “Foundation” of this book introduces the general notions and fundamentals of this new approach, as well as the main concepts, terminology and theories. The second part “Beyond Rational Agents” describes the systematic biases and cognitive limits confirmed by behavioral experiments of varying types and explains in detail how they contradict the assumptions and predictions of formal models in information retrieval (IR). The third part “Toward A Behavioral Economics Approach” first synthesizes the findings from existing preliminary research on bounded rationality and behavioral economics modeling in information seeking, retrieval, and recommender system communities. Then, it discusses the implications, open questions and methodological challenges of applying the behavioral economics framework to different sub-areas of IR research and practices, such as modeling users and search sessions, developing unbiased learning to rank and adaptive recommendations algorithms, implementing bias-aware intelligent task support, as well as extending the conceptualization and evaluation on IR fairness, accountability, transparency and ethics (FATE) with the knowledge regarding both human biases and algorithmic biases. This book introduces a behavioral economics framework to IR scientists seeking a new perspective on both fundamental and new emerging problems of IR as well as the development and evaluation of bias-aware intelligent information systems. It is especially intended for researchers working on IR and human-information interaction who want to learn about the potential offered by behavioral economics in their own research areas.

Managing the Cultural Business

Author : Michela Addis
Publisher : Routledge
Page : 317 pages
File Size : 18,81 MB
Release : 2020-11-23
Category : Business & Economics
ISBN : 1000225313

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The arts and cultural sector has always been a challenging area in which to find business success; the advent of the global health crisis due to COVID-19 has greatly amplified these challenges. Thanks to the expertise of 22 scholars, this text elaborates on the most common key strategic mistakes and misunderstandings to help arts and cultural organizations finding success. This book starts by looking at the evolution of competition in those industries. Several new and challenging drivers shape the competitive environments of arts and cultural organizations. A customer-centric approach helps in identifying ten crucial managerial processes in which strategic mistakes are commonly made. This book proposes a revised managerial vision of the key processes that constitute every arts and cultural organization. Each chapter offers an innovative analysis of a classic managerial problem, describing popular mistakes and providing case-based insights derived from real world important examples. Specifically, each chapter elaborates on two illuminating examples, one of which is always chosen among the Italian arts and cultural organizations, thus belonging to the world’s leading cultural sector. Speaking to current and student arts managers, this insightful book channels national and supranational cultural heritage to provide essential reading for managers of present and future arts and cultural organizations.

Preference Change

Author : Till Grüne-Yanoff
Publisher : Springer Science & Business Media
Page : 273 pages
File Size : 26,86 MB
Release : 2009-06-11
Category : Philosophy
ISBN : 9048125936

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Changing preferencesis a phenomenonoften invoked but rarely properlyaccounted for. Throughout the history of the social sciences, researchers have come against the possibility that their subjects’ preferenceswere affected by the phenomenato be explainedor by otherfactorsnot taken into accountin the explanation.Sporadically, attempts have been made to systematically investigate these in uences, but none of these seems to have had a lasting impact. Today we are still not much further with respect to preference change than we were at the middle of the last century. This anthology hopes to provide a new impulse for research into this important subject. In particular, we have chosen two routes to amplify this impulse. First, we stress the use of modellingtechniquesfamiliar from economicsand decision theory. Instead of constructing complex, all-encompassing theories of preference change, the authors of this volume start with very simple, formal accounts of some possible and hopefully plausible mechanism of preference change. Eventually, these models may nd their way into larger, empirically adequate theories, but at this stage, we think that the most importantwork lies in building structure.Secondly,we stress the importance of interdisciplinary exchange. Only by drawing together experts from different elds can the complex empirical and theoretical issues in the modelling of preference change be adequately investigated.

The Digital Fundraising Book

Author : Matt Howarth
Publisher :
Page : 186 pages
File Size : 37,19 MB
Release : 2016-03-31
Category :
ISBN : 9780993477300

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This is the guide for charities and nonprofits to help you learn all you need to know about digital fundraising. It covers everything from the very basics, right up to the tricky stuff, like maximising conversion rates. A must-read for anyone wanting to develop their digital fundraising strategy.

Behavioral Science & Policy, Volume 3

Author : Craig R. Fox
Publisher : Brookings Institution Press
Page : 90 pages
File Size : 25,81 MB
Release : 2018-06-19
Category : Political Science
ISBN : 0815734549

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The success of nearly all public- and private-sector policies hinges on the behavior of individuals, groups, and organizations. Today, such behaviors are better understood than ever, thanks to a growing body of practical behavioral science research. However, policymakers often are unaware of behavioral science findings that may help them craft and execute more effective and efficient policies. The pages of this new journal will become a meeting ground: a place where scientists and non-scientists can encounter clearly described behavioral research that can be put into action. By design, the scope of Behavioral Science & Policy is broad, with topics spanning health care, financial decisionmaking, energy and the environment, education and culture, justice and ethics, and work place practices. Contributions will be made by researchers with expertise in psychology, sociology, law, behavioral economics, organization science, decision science, and marketing. The journal is a key offering of the Behavioral Science & Policy Association in partnership with the Brookings Institution. The mission of BSPA is to foster dialog between social scientists, policymakers, and other practitioners in order to promote the application of rigorous empirical behavioral science in ways that serve the public interest. BSPA does not advance a particular agenda or political perspective.