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Presented By: Social, Behavioral, and Experimental Economics (SBEE)

Social, Behavioral & Experimental Economics (SBEE): The impact of social networks on charitable giving

Rachel Croson, Michigan State University

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"The impact of social networks on charitable giving"

Abstract
Previous research demonstrates the impact of the behavior of others in one’s social network on a variety of individual decisions, including vaccination decisions (Rao, Mobius and Rosenblat 2007), consumer purchasing (Mobius, Niehaus, Rosenblat 2011), investment decisions (Duflo and Saez, 2002, 2003), and government aid (Bertrand and Luttmer 2000). This paper identifies the impact of social networks on charitable giving. A series of surveys find a correlation between the number of an individual’s friends and family who listen to a public radio station and an individual’s contribution, but no effect of the absolute size of one’s social network. A field experiment randomly assigns perceived size of listening network, and thus establishes causal evidence for the correlational relationship.

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