Abstract
Default is widely recognized as effective nudging techniques across various fields. Their influence on donation rates and average donation amounts is actively researched, yet most studies focus on Western countries. To the best of my knowledge, there has been no systematic investigation of the default effect on charitable giving in Japan. Japan is considered one of the “cautiously pro-nudge nations" (Sunstein et al., 2018) and does not have as well-established a donation culture as Western nations. This makes Japan an important subject for testing the external validity of the default effect on charitable giving. Moreover, there are already practical examples of defaults being used in fundraising in Japan, highlighting the need to examine their practical significance.
This study aims to examine how default affects charitable giving in Japan. To achieve this, we will conduct an online field experiment using oTree (Chen et al., 2016). Participants, recruited through a Japanese crowdsourcing service, will take part in a donation experiment using the dictator game format, providing us with real observations of donation behavior. Participants will be randomly assigned to a control group or one of two intervention groups with different default values to evaluate the default effect by comparing donation behaviors across groups. Additionally, we intend to analyze the mechanisms and heterogeneity of the effect using survey data collected before and after the experiment. Employing machine learning techniques, we will estimate the Conditional Average Treatment Effect (CATE) and explore the presence of an optimal policy, allowing us to assess the potential to refine the intervention.
By examining the default effect in the unique context of Japan, this study adds to the literature on the impact of defaults on charitable giving (Altmann et al., 2019; Edwards and List, 2014; Goswami and Urminsky, 2016). It also offers new evidence on using machine learning to optimize default policies, contributing to emerging research directions proposed by Athey et al. (2024).
Reference:
Altmann, S., Falk, A., Heidhues, P., Jayaraman, R., & Teirlinck, M. (2019). Defaults and Donations: Evidence from a Field Experiment. The Review of Economics and Statistics, 101(5), 808–826. https://doi.org/10.1162/rest_a_00774
Athey, S., Byambadalai, U., Cersosimo, M., Koutout, K., & Nath, S. (2024). The Heterogeneous Impact of Changes in Default Gift Amounts on Fundraising. Available at SSRN: https://ssrn.com/abstract=4785704 or http://dx.doi.org/10.2139/ssrn.4785704
Chen, D. L., Schonger, M., & Wickens, C. (2016). oTree: An open-source platform for laboratory, online, and field experiments. Journal of Behavioral and Experimental Finance, 9, 88-97.
Edwards, J. T., & List, J. A. (2014). Toward an understanding of why suggestions work in charitable fundraising: Theory and evidence from a natural field experiment. Journal of Public Economics, 114, 1–13. https://doi.org/10.1016/j.jpubeco.2014.02.002
Goswami, I., & Urminsky, O. (2016). When should the Ask be a Nudge? The Effect of Default Amounts on Charitable Donations. Journal of Marketing Research, 53(5), 829–846. https://doi.org/10.1509/jmr.15.0001
Sunstein, C. R., Reisch, L. A., & Rauber, J. (2018). A worldwide consensus on nudging? Not quite, but almost. Regulation & Governance, 12(1), 3–22. https://doi.org/10.1111/rego.12161
【March 10, 2025】Update
・Due to a malfunction in the oTree experimental environment, the experiment date has been postponed by one week to March 12th.
・The IRB Approval Date and IRB Approval Number were entered incorrectly, so they have been corrected.
・Revise the content of the two attached files: Pre-Analysis Plan and Theoretical Background.