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Procrastination in Charitable Giving

  • Topic: Procrastination in Charitable Giving
  • Speaker:

    Professor Maros Servatka

  • Venue:E4A - 623
  • When: 26th May, 2016, (Thu)
  • Time: 11:00 am - 12:00 pm (morning tea starts at 10:45 am)

The Seminar is based on the following two papers:

1. S. Knowles and M. Servatka (2015) "Transaction Costs, the Opportunity Cost of Time and Procrastination in Charitable Giving," Journal of Public Economics, 125, 54-63

We conduct a laboratory experiment to study whether giving people more time to donate to charity reduces donations. People may intend to donate, but because of the transaction costs of doing so, postpone making the payment until they are less busy, and having postponed making the donation once, keep postponing. We conjecture that transaction costs will have a greater effect on donations if the solicitation is received when the opportunity cost of time is high. We find evidence of a transaction cost reducing donations, with the size of this effect depending on the opportunity cost of time, but no statistically significant evidence that giving people more time to donate increases procrastination and thus reduces donations.

2. S. Knowles, M. Servatka, and T. Sullivan (2016) "Deadlines, Procrastination, and Inattention in Charitable Giving: A Field Experiment," working paper.

We conduct a field experiment to analyze the effect of deadline length on charitable tasks. Participants are invited to complete an online survey, with a donation going to charity if they do so. Participants are given either one week, one month or no deadline by which to respond. Completions are lower for the one month deadline, than for the other two treatments, consistent with the model of inattention developed in Taubinsky (2014) and also with the idea that not specifying a deadline conveys urgency.

Speaker Profile:

Maros Servatka is a Professor of Economics at the Macquarie Graduate School of Management and the Director of MGSM Vernon L. Smith Experimental Economics Laboratory. He received his MA in Quantitative Methods from the Warsaw School of Economics and his PhD in Economics from the University of Arizona. He previously held a postdoctoral position at the Sonder Forschungs Bereich 504 at the University of Mannheim and an Associate Professor position at University of Canterbury where he was also the Director of the New Zealand Experimental Economics Laboratory. He has held visiting positions at the George J. Stigler Center for the Economy and the State at the University of Chicago Booth School of Business and Weatherhead School of Management Case Western Reserve University.

Professor Servatka is the Founder and past President (2012-14) of Slovak Economic Association, the first professional association of Slovak economists. He currently serves on the executive committee of the association.  He also serves on the editorial board of Journal of Behavioral and Experimental Economics. Professor Servatka specializes in experimental and behavioral economics. His research has been published in European Economic Review, Experimental Economics, Journal of Economic Behavior and Organization, Journal of Economic Psychology, Journal of Public Economics, among others.



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