Publication details
Effectiveness of Charitable lottery design: Experimental evidence from the Czech Republic and Russia
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| Year of publication | 2010 |
| Type | Appeared in Conference without Proceedings |
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| Description | The paper presents results of multicultural economic experiment that took part in two central and eastern European countries: the Czech Republic and Russia. The experiment was focused on studying behaviour of eastern European university students in the situation simulating a charitable lottery. The experiment was, to a great extent, inspired by experimental design of Dale (2004). In accordance with Dale’s study we examined the effectiveness of various lottery structures. From Dale’s experimental design we adopted the fixed prize lottery (raffle) structure where tickets are sold for chances of winning a prize. We introduced a new scheme (lottery structure) – modified fixed prize lottery - within which the chance of winning was equal for all contributing individuals (and hence independent of the amount of their actual non-zero contribution). Our results show that such scheme is not efficient, i.e. that individuals contribute considerably less under the modified fixed prize lottery than under the classic raffle. Comparison of results acquired in three different countries (CR, Ru and USA) enabled us to find certain differences in individuals’ behaviour that could be qualified as “country effects”. Particularly, under the fixed prize lottery we observed considerably lower amounts of contributions by the Czech and Russian participants compared to their American colleagues. As far as the behaviour of the Czech and Russian students concerns, the differences were significant only in the modified fixed prize lottery where the Russian students contributed considerably more than the Czech ones. |