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Impact of the Multiplicity of Alternatives on the Effectiveness of Fundraising

Student: Zorin Lev

Supervisor: Anton Suvorov

Faculty: Faculty of Economic Sciences

Educational Programme: Joint HSE-NES Undergraduate Program in Economics (Bachelor)

Year of Graduation: 2021

In this paper, I study the effect of the number of alternatives on total online donations using an experiment in the form of a dictator's game. To arrange areas of charitable work I have selected charities aimed to help sick children, the elderly and a mixed case. I visualized the results of the experiment, evaluated the regressions of the second and third order, where the total donations is the dependent variable, and the number of user’s alternatives is the explanatory variable. I also tested the significance of differences between groups using nonparametric tests. As a result, I found a statistically significant increase in donations when the number of alternatives increases over one alternative. It is not possible to identify the optimal number of alternatives, since the hypothesis of the U-shaped form of the curve has limited statistical confirmation. Also, I cannot statistically prove that there are more donations in one of the categories than in any other with a fixed number of alternatives. My results have practical importance for application in the field of promoting charity.

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