Browsing by Author "Name-Correa, AJ"

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    “Giving” in to social pressure
    (Games and Economic Behavior, 2016-09-01) Name-Correa, AJ; Yildirim, H
    © 2016 Elsevier Inc.We develop a theory of charitable giving in which donors feel social pressure from a direct solicitation. We show that equilibrium donations are concentrated around a social norm. Despite a higher level of the public good, relatively poor and/or low altruism givers fare worse under social pressure and would avoid the solicitor at a cost. Aggregate donor welfare improves to the extent that the added social motive alleviates the underprovision of the public good; however, overprovision may result. Our theory therefore predicts a light-handed regulation for charitable solicitations, which is consistent with their exemption from the popular Do Not Call list in the U.S. We further show that contrary to pure altruism, a more equal income distribution may produce more of the public good. In fundraising campaigns where a social norm is not apparent, one may emerge endogenously if donors are not too heterogeneous.
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    Social pressure, transparency, and voting in committees
    (Journal of Economic Theory, 2019-09) Name-Correa, AJ; Yildirim, H