Water the flowers you want to grow? Evidence on private recognition and donor loyalty

Bittschi B, Dwenger N, Rincke J (2021)

Publication Type: Journal article

Publication year: 2021

Journal

European Economic Review Elsevier

Book Volume: 131

Article Number: 103624

DOI: 10.1016/j.euroecorev.2020.103624

Abstract

We study donor loyalty in the context of church membership in Germany. Church members have to make substantial payments to their church but can opt out at any time. In a large-scale field experiment, we examine how private recognition for past payments affects church members’ loyalty. We find that recognizing past payments reduces opt-outs, but the response is temporary. The effect of recognition on retention is most pronounced among members in the bottom quartile of baseline payments to the church. Consistent with optimization frictions prior to the experiment, we observe a spike in opt-outs after treatment for particularly costly memberships.

Authors with CRIS profile

Johannes Rincke Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftspolitik

Involved external institutions

Universität Hohenheim DE Germany (DE) Institut für Höhere Studien / Institute für Advanced Studies (IHS) AT Austria (AT)

How to cite

APA:

Bittschi, B., Dwenger, N., & Rincke, J. (2021). Water the flowers you want to grow? Evidence on private recognition and donor loyalty. European Economic Review, 131. https://dx.doi.org/10.1016/j.euroecorev.2020.103624

MLA:

Bittschi, Benjamin, Nadja Dwenger, and Johannes Rincke. "Water the flowers you want to grow? Evidence on private recognition and donor loyalty." European Economic Review 131 (2021).

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