Will There Be Blood?? Incentives and Displacement Effects in Pro-Social Behavior

Nicola Lacetera; Mario Macis; Robert Slonim

doi:10.1257/pol.4.1.186

$Abstract We present evidence from nearly 14,000 American Red Cross blood drives and from a natural field experiment showing that economic incentives have a positive effect on blood donations without increasing the fraction of donors who are ineligible to donate. The effect increases with the incentive's economic value. However, a substantial proportion of the increase in donations is explained by donors leaving neighboring drives without incentives to attend drives with incentives; this displacement also increases with the economic value of the incentive. We conclude that extrinsic incentives stimulate pro-social behavior, but unless displacement effects are considered, the effect may be overestimated. (JEL D64 , H41 , I12 )$

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Will There Be Blood?? Incentives and Displacement Effects in Pro-Social Behavior

Lacetera, Nicola; Macis, Mario; Slonim, Robert

Follow American Economic Journal: Economic Policy , Volume 4 (1) American Economic Association – Feb 1, 2012

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Will There Be Blood?? Incentives and Displacement Effects in Pro-Social Behavior

Lacetera, Nicola; Macis, Mario; Slonim, Robert

Follow American Economic Journal: Economic Policy , Volume 4 (1) American Economic Association – Feb 1, 2012

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