Corporate Social Responsibility in the work place - Experimental evidence on CSR from a gift-exchange game

We analyze the effect of investments in corporate social responsibility (CSR) on workers' motivation. In our experiment, a gift exchange game variant, CSR is captured by donating a certain share of profits to a charity. We are testing for CSR effects by varying the possible share of profits given away. Additionally, we investigate the effect of a mission match, i.e., a worker prefering the same charity the firm is actually donating to. Our results show that on average workers reciprocate investments into CSR with increased effort. A mission match does result in higher effort, but only when investment into CSR is high.Corporate Social Responsibility, gift-exchange game, experiment, labor market, incentives, moral hazard, principal agent

On the Channels of Pro-Social Behavior Evidence from a natural field experiment

We conduct a natural field experiment on direct and indirect transfer mechanisms for small donations. Charitable contributions are significantly higher if made indirectly, i.e. if they are tied to the purchase of a good sold at a premium, than if they are made directly. Donations are signficantly higher under both transfer mechanisms if people are given a suggested reference donatioTied versus untied transfers, charitable donations, charity, willingness to give, pro social behavior

Inefficient but Effective? A field experiment on the effectiveness of direct and indirect transfer mechanisms

We conduct a field experiment on direct and indirect transfer mechanisms. It shows that people are willing to donate significantly more if the donation is indirect, i.e., it is tied to the purchase of a good with a price premium, rather than made directly. This points to an efficiency–effectiveness trade–off: even though indirect donations are less efficient than direct donations, they are more effective in mobilizing resources. Our findings hold for ‘Fair Trade’ coffee as well as for ‘normal’ coffee. However, the strength of the efficiency–effectiveness trade–off is higher in the case of ‘Fair Trade’

Inefficient but Effective? A field experiment on the effectiveness of direct and indirect transfer mechanisms

We conduct a field experiment on direct and indirect transfer mechanisms. It shows that people are willing to donate significantly more if the donation is indirect, i.e., it is tied to the purchase of a good with a price premium, rather than made directly. This points to an efficiency–effectiveness trade–off: even though indirect donations are less efficient than direct donations, they are more effective in mobilizing resources. Our findings hold for ‘Fair Trade’ coffee as well as for ‘normal’ coffee. However, the strength of the efficiency–effectiveness trade–off is higher in the case of ‘Fair Trade’.Tied transfers, donations, charity, efficiency versus effectiveness, ‘fair trade’

On the Channels of Pro-Social Behavior-Evidence from a natural field experiment

We conduct a natural field experiment on direct and indirect transfer mechanisms for small donations. Charitable contributions are significantly higher if made indirectly, i.e. if they are tied to the purchase of a good sold at a premium, than if they are made directly. Donations are significantly higher under both transfer mechanisms if people are given a suggested reference donation.Tied versus untied transfers, charitable donations, charity, willingness to give, pro social behavior

Inefficient but effective? A field experiment on the effectiveness of direct and indirect transfer mechanisms

We conduct a field experiment on direct and indirect transfer mechanisms. It shows that people are willing to donate significantly more if the donation is indirect, i.e., it is tied to the purchase of a good with a price premium, rather than made directly. This points to an efficiency–effectiveness trade–off: even though indirect donations are less efficient than direct donations, they are more effective in mobilizing resources. Our findings hold for ‘Fair Trade’ coffee as well as for ‘normal’ coffee. However, the strength of the efficiency–effectiveness trade–off is higher in the case of ‘Fair Trade’.Tied transfers, donations, charity, efficiency versus effectiveness, ‘fair trade’

What drives motivated agents? The "right" mission or sharing it with the principal

Motivated agents are characterized by increasing their effort if their work generates not only a monetary return for them but also a benefit for a mission they support. While their motivation may stem from working for their preferred (i.e., the `right') mission, it may also be the principal's choice of the right mission (i.e., a mission preference match) that motivates them. We investigate experimentally to what extent these two motivations are driving the effect of a mission on agent effort. We find that agents care not only about the mission as such but also whether the principal shares this mission. Our analysis estimates the additional effect of a mission preference match to be as big as the effect of just working for the right mission. It seems that the full potential of `motivation by mission' is realized only when principals share as well as support the agents' mission, stressing the importance of the economics of identity in labor market settings

Applying Quadratic Scoring Rule transparently in multiple choice settings: A note

The quadratic scoring rule (QSR) is often used to guarantee an incentive compatible elicitation of subjective probabilities over events. Experimentalists have regularly not been able to ensure that subjects fully comprehend the consequences of their actions on payoffs given the rules of the games. In this note, we present a procedure that allows the transparent use of the QSR even in multiple-choice scenarios. For that purpose, two methodological means are applied: an alternative representation of the score and a short learning period to familiarize subjects with the payoff mechanism. The results suggest that both means were necessary and successful in facilitating subjects’ understanding of the rule.quadratic scoring rule, belief elicitation, saliency, experiment

Applying Quadratic Scoring Rule transparently in multiple choice settings: A note

The quadratic scoring rule (QSR) is often used to guarantee an incentive compatible elicitation of subjective probabilities over events. Experimentalists have regularly not been able to ensure that subjects fully comprehend the consequences of their actions on payoffs given the rules of the games. In this note, we present a procedure that allows the transparent use of the QSR even in multiple-choice scenarios. For that purpose, two methodological means are applied: an alternative representation of the score and a short learning period to familiarize subjects with the payoff mechanism. The results suggest that both means were necessary and successful in facilitating subjects' understanding of the rule.Quadratic scoring rule, experimental methodology, experimental design

Inefficient but effective? A field experiment on the effectiveness of direct and indirect transfer mechanism

We conduct a field experiment on direct and indirect transfer mechanisms. It shows that people are willing to donate significantly more if the donation is indirect, i.e., it is tied to the purchase of a good with a price premium, rather than made directly. This points to an efficiencyeffectiveness tradeoff even though indirect donations are less efficient than direct donations, they are more effective in mobilizing resources. Our findings hold for Fair Trade coffee as well as for normal coffee. However, the strength of the efficiencyeffectiveness tradeoff is higher in the case of Fair Trade