Modeling Scale Attraction Effects: an Application to Charitable Donations and Optimal Laddering

Kee Yuen Lee, University of Michigan, USA
Fred Feinberg, University of Michigan, USA
Charities usually employ an “appeals scale”, a list of suggested amounts, plus “other”. Economic theory disapproves, but behaviorally, does it work? Using large-scale charity data, our (heterogeneous Tobit) model strongly confirms scale attraction effects and donation seasonality, and moreover allows tests of various internal and external reference price theories.
[ to cite ]:
Kee Yuen Lee and Fred Feinberg (2013) ,"Modeling Scale Attraction Effects: an Application to Charitable Donations and Optimal Laddering", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.