(The) effect of information nudge on charitable giving

Abstract

This study examines the effect of a specific information nudge - information on how much people in different income groups donate - on one's donation decisions through a survey experiment. I investigate the nudge effects in various dimensions: subjects' demographic characteristics, donation amounts in different income deciles, religious or non-religious donations, etc. I found three main results. First, the nudges work differently, depending on gender. Second, the nudges make donation amounts converge through social comparison. If people find out that they donate more than other people, their donation amounts tend to decrease, and vice versa. Third, religious and non-religious donations are substitutes.