Abstract
Theory commonly posits agents who care both for the level of public good provision and the extent to which they personally contribute to the cause. Simply put, agents feel “warm glow” from the donations they make. I discuss a lottery fundraiser conducted in the field devised to exogenously vary the incentive to give and identify the structural parameters of warm glow. Estimates suggest that for participants claiming warm glow as their primary motivation, its shape is increasing and concave. Nevertheless, welfare analysis suggests that warm glow is unlikely to be the only important factor in the decision to give.
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