The Activist for Activists. Author of Make a Difference with Mental Health Activism and The Happy Activist: Journey the 5-Step Activism Path to Focus Your Passion and Change the World. Teacher, Psychologist, Environmental Activist, Animal Lover.
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Last Updated on October 23, 2024
Humans are such complex creatures. Although we want to think we behave rationally, much research shows we are prone to irrationality. It even impacts the way we donate. There are gifts that inspire donations.
This quiz question is about how people donate. It is a part of Dan Ariely’s “Irrational Game.”
Researchers entered participants in a lottery for $95. Before the players learned the outcome of the lottery they decided how much of their potential winnings they would like to donate to Save-the-Children Foundation.
Researchers told half of the participants they would get a thank-you tote bag with a Save-the-Children logo, while they didn’t offer the other half anything in return.
Question
Did participants who were offered a thank-you gift donate more?
- Yes, they offered $4 more.
- Yes, they offered $8 more.
- No, they offered $4 less.
- No, they offered $8 less.
Scroll down for the answer…
Answer
Number 4 is the correct answer. They offered $8 less.
Gifts That Don’t Inspire Donations
Ariely explains how a thank-you gift changes your view of how you donate. Without a gift, you are giving from your heart. With a gift, it becomes more like an economic transaction.
Read more about irrational humans in my post “At the Intersection of Nudging and Religion.” I review the classic behavioral economics study of participation in 401K matching funds. Companies offered employees a company match for their 401k contribution. This was free money – they put in 3% of their salary, for example, and the company gives them a 3% match. Did they take the match?
Thaler changed the default choice conditions. Instead of the default that employees had to opt-in to get the match, companies automatically enrolled employees in the plan, with the choice to opt out. A huge percentage of employees kept the default option and did not opt out. The companies nudged these employees toward rational behavior.
[You may also enjoy How To Make Powerful Change in Your Activism.]
Newman, G. E., & Shen, Y. J. (2012). The counterintuitive effects of thank-you gifts on charitable giving. Journal of Economic Psychology, 33(5), 973-983.
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