What motivates people to give their money to charity? As a college student I have heard many of my peers say things like, “well if I had more money I would donate more to charity”, but is that the case for the rest of Americans? When it comes to giving, humans clearly stray away from the rational model. Charitable preferences are never stable, information is very rarely asymmetric, and utility differs depending on how the donation is given and perceived. One of the most surprising facts of charity in America is that the people who can afford to give the Continue reading Why Do the Rich Give Less?
In case you’ve lived under a rock over the summer, the ALS Ice Bucket Challenge has been a campaign to encourage donation to the ALS Association, an organization that provides support to those afflicted by amyotrophic lateral sclerosis (ALS) – also known as Lou Gehrig’s disease. The Ice Bucket Challenge has raised an enormous amount of money, and has many people talking about the economic principles behind donation – whether they realize it or not. First, Vox helped to dispel the notion that people shouldn’t participate in the Ice Bucket Challenge because it’s a waste of water. In fact, compared to productive activities which use water, the ice Continue reading The Economics of the ALS Ice Bucket Challenge