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Title:Inefficient but effective? A field experiment on the effectiveness of direct and indirect transfer mechanism PDF Logo
Authors:Koppel, Hannes
Schulze, Günther G.
Issue Date:2008
Series/Report no.:Joint discussion paper series in economics 2008,02
Abstract:We conduct a field experiment on direct and indirect transfer mechanisms. It shows that people are willing to donate significantly more if the donation is indirect, i.e., it is tied to the purchase of a good with a price premium, rather than made directly. This points to an efficiencyeffectiveness tradeoff even though indirect donations are less efficient than direct donations, they are more effective in mobilizing resources. Our findings hold for Fair Trade coffee as well as for normal coffee. However, the strength of the efficiencyeffectiveness tradeoff is higher in the case of Fair Trade.
Subjects:Tied transfers
efficiency versus effectiveness
fair trade
Document Type:Working Paper
Appears in Collections:MAGKS Joint Discussion Paper Series in Economics, Universität Marburg

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