The Prestige Motive for Making Charitable Transfers

  • Harbaugh W
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If people are so self-interested, why do they give their money away to charities? One possibility is that people care about the level of the public good their donations provide. But this is not a good explanation: free-tiding typically dominates donating even for people who care a great deal about the good in question, and even in groups that are substantially smaller than those in which people contribute. [ABSTRACT FROM AUTHOR]

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  • William T. Harbaugh

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