EFFECTIVENESS OF CHARITABLE LOTTERY DESIGN: EXPERIMENTAL EVIDENCE FROM THE CZECH REPUBLIC AND RUSSIA

• Authors: Špalek Jiří , Zuzana Berná
• Languages of publication: EN

Abstracts

EN

The paper presents the results of a multicultural economic experiment executed in the Czech Republic and Russia. The experiment was focused on studying the behaviour of economic agents in a situation simulating a charitable lottery. From Dale’s (2004) experimental design, we adopted the fixed-prize lottery (raffle) structure, in which tickets are sold for chances of winning a prize. This means that the more tickets one buy, the higher probability to win he gains. We introduced a new scheme – the modified fixed-prize lottery - within which the chance of winning was equal for all contributing individuals. Our results show that such a structure is not effective, that is, that individuals contribute considerably less under the modified fixed-prize lottery than under the classic raffle.

Keywords

EN

PUBLIC GOODS; EXPERIMENT; LOTTERY; CZECH REPUBLIC; RUSSIA

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2012
• Volume: 60
• Issue: 3
• Pages: 239 – 258

Contributors

author

Špalek Jiří

• Masarykova Univerzita, Fakulta ekonomicko-správní, Katedra veřejné ekonomie, Lipová 507/41a, 602 00 Brno, Czech Republic

author

Zuzana Berná