Is sharing caring? Disentangling prosociality from virtue signalling

Authors: Hamideh Mohtashami Borzadaran, Konstantinos Ioannidis, Johannes Lohse

Stage: Data collection in progress

Abstract: Cheap public signals such as liking or sharing charitable causes on online platforms may crowd out charitable donations if they already satisfy image and social-approval motives without subsequent giving. We study this substitution effect in an online experiment in which participants select a charity aligned with their preferred cause and decide how much of a potential bonus to donate. Participants are randomized to a baseline with donations only or to a treatment condition that also allows choosing a short, pre-written supportive message in addition to giving. To discern between different motives we also randomize participants to one of three observability conditions: (i) private decisions or public decisions that may be observed by others either (ii) before or (iii) after those others decide. Primary outcomes are the probability of donating and the donation amount. We additionally examine how observed donations and messages affect subsequent participants’ behavior. The findings will clarify when public support complements versus replaces monetary giving and will provide guidance for fundraising design on digital platforms.

Funding: Keynes Fund (£26,300)

Keywords: charitable giving, social signaling, crowding out, peer effects, social image, cheap talk, social transmission, experiment

JEL codes: C91, D64, D91, H41