Matching Incentive Research Articles

Charitable Giving by the Poor: A Field Experiment in Kyrgyzstan

In a large-scale natural field experiment, we partnered with a microlending company in Kyrgyzstan that asked over 180,000 of its clients for donations to social projects as a form of corporate philanthropy. In a 2 × 2 design, we explored two main (preregistered) hypotheses about giving by the poor. First, based on a conjecture that the poor are more price sensitive than the rich and in contrast to previous studies, we hypothesize that matching incentives induce crowding in of out-of-pocket donations. Second, we hypothesize that our population cares about their proximity to the charitable project. We find evidence in favor of the former hypothesis but not the latter. Previous studies of charitable giving focus on middle- or high-income earners in Western countries, neglecting the poor, although the lowest-income groups are often shown to contribute substantial shares of their income to charitable causes. Our results challenge the evidence in the extant literature but are in line with our theoretical model. The implications for fundraising managers are that the optimal design of fundraising campaigns crucially depends on the targeted groups and that donation matching is successful in stimulating participation in poorer populations. This paper was accepted by Yan Chen, behavioral economics and decision analysis. Funding: Financial support was from the Deutsche Forschungsgemeinschaft [Grant 280092119] and the Schweizerischer Nationalfonds zur Förderung der Wissenschaftlichen Forschung [Grant 100018_189152]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4702 .

A Preliminary Evaluation of Virginia Fresh Match: Impacts and Demographic Considerations for Future Fruit and Vegetable Incentive Programs.

The purpose of this communication is to describe the preliminary evaluation of the Virginia Fresh Match (VFM) financial incentive program for fresh fruits and vegetables for Virginia Supplemental Nutrition Assistance Program shoppers and to determine if there were differences in incentive outcomes by race. In this cross-sectional study, a questionnaire was administered to shoppers using Virginia Fresh Match incentives at participating farmers markets and community-based food retail outlets. Repeated measures ANOVAs were used to detect differences in fruit and vegetable consumption between demographic groups over time. Chi-square tests were used to determine if there were associations between race and perceived impact of VFM incentives on making food last and the attribution of VFM incentives to changes in fruit and vegetable consumption frequency. Frequency of fruit and vegetable intake was significantly higher during VFM incentive use, with a difference of 1.17 ± 0.07 and 1.07 ± 0.07 on a Likert scale measure, respectively (p ≤ 0.001). There were racial differences in assertions that VFM incentives helped food to last. VFM incentives were effective at increasing fruit and vegetable consumption, but racial differences should be considered in the administration of VFM to avoid reinforcing systems or approaches that may contribute to disparities in food access and food security.

Evaluation of Farmers Markets in Selected Counties in Washington State: an Analysis of Accessibility, Location, and Product Selection

Abstract Objectives Farmers markets (FM) may be able to bridge the gap between food insecurity (experienced by 12% of Washingtonians) and access to nutritionally sufficient foods by accepting programs such as supplemental nutrition assistance program benefits (SNAP) and Fresh Bucks (matching incentive program). These programs have potential to make FM produce affordable to all. This study intends to identify the perspectives of Washington (WA) FM shoppers regarding access, atmosphere, and prices and selection of produce at the FM. This research located WA FMs in low-income and low food access areas, and assessed activity and perspectives of populations using FMs. Methods Identified FMs in interest areas of WA using mapping tools (PolicyMap, USDA ERS data map). Shoppers at 16 FMs participated in public dot surveys using stickers to answer questions centered around awareness, access, and perspective of the market and the products offered by placing stickers on predetermined answers. Shoppers were asked to participate in an anonymous ballot survey (Likert scale) with more sensitive questions on perspectives of the market and the shoppers’ food security status. Results Sixteen FMs were identified in eleven cities in WA that accept SNAP benefits and are located in or near low food access and low-income areas of WA. At least 30 ballots were distributed at each market; the range of ballots returned was 9 to 36 ballots. Respondents were asked how they learned of the market in the dot survey: 35.6% responded “word of mouth,” 34.6% answered “drive/walk by,” and 10.5% learned via an advertisement. When asked if respondents had experience with food insecurity, 20% of respondents answered “yes.” Of this subpopulation, 45% perceived produce at FMs to be more expensive than produce at supermarkets and 81.7% reported feeling a sense of community at the FM. Conclusions Most respondents learned about the FM via word of mouth or by physically passing the market; lack of awareness of the FM may lead to a lack of access to the FM. Shoppers perceived FM products to be pricier than produce at conventional markets; however, FM shoppers with food insecurity experience still chose to shop at FMs and most of this subpopulation indicated feeling a sense of community at the FM. Funding Sources Supported by Bastyr University Faculty Student Research Grant.

Implementation of a Farmers Market Incentive Program in Maryland: Perspectives from Vendors

A number of farmers markets have begun to offer matching incentive programs as a way to increase access to fresh foods for low-income families and increase sales among vendors. However, research evaluating the implementation of these programs is limited. This study employed a qualitative approach, interviewing vendors (n=19) selling at four farmers markets in Maryland to understand the barriers and facilitators to implementing the Maryland Market Money program. Overall, ven­dors reported positive attitudes toward the incen­tive program. Interviewed vendors identified key facilitators such as ease of implementation and positive social and economic impact of the pro­gram for participants and themselves. Vendors also discussed barriers, which included a lack of under­standing among customers about how the program operated, poor program promotion, and lack of educational materials. Some vendors described negative experiences with customers and expressed stigmatizing views toward customers. Given that vendors are key stakeholders in program imple­mentation, as incentive programs continue to expand, it is important to take into account their views and concerns to create successful programs. See the press release for this article. 

Evaluation of a savings-led family-based economic empowerment intervention for AIDS-affected adolescents in Uganda: A four-year follow-up on efficacy and cost-effectiveness.

Children who have lost a parent to HIV/AIDS, known as AIDS orphans, face multiple stressors affecting their health and development. Family economic empowerment (FEE) interventions have the potential to improve these outcomes and mitigate the risks they face. We present efficacy and cost-effectiveness analyses of the Bridges study, a savings-led FEE intervention among AIDS-orphaned adolescents in Uganda at four-year follow-up. Intent-to-treat analyses using multilevel models compared the effects of two savings-led treatment arms: Bridges (1:1 matched incentive) and BridgesPLUS (2:1 matched incentive) to a usual care control group on the following outcomes: self-rated health, sexual health, and mental health functioning. Total per-participant costs for each arm were calculated using the treatment-on-the-treated sample. Intervention effects and per-participant costs were used to calculate incremental cost-effectiveness ratios (ICERs). Among 1,383 participants, 55% were female, 20% were double orphans. Mean age was 12 years at baseline. At 48-months, BridgesPLUS significantly improved self-rated health, (0.25, 95% CI 0.06, 0.43), HIV knowledge (0.21, 95% CI 0.01, 0.41), self-concept (0.26, 95% CI 0.09, 0.44), and self-efficacy (0.26, 95% CI 0.09, 0.43) and lowered hopelessness (-0.28, 95% CI -0.43, -0.12); whereas Bridges improved self-rated health (0.26, 95% CI 0.08, 0.43) and HIV knowledge (0.22, 95% CI 0.05, 0.39). ICERs ranged from $224 for hopelessness to $298 for HIV knowledge per 0.2 standard deviation change. Most intervention effects were sustained in both treatment arms at two years post-intervention. Higher matching incentives yielded a significant and lasting effect on a greater number of outcomes among adolescents compared to lower matching incentives at a similar incremental cost per unit effect. These findings contribute to the evidence supporting the incorporation of FEE interventions within national social protection frameworks.

Utilization of the California Nutrition Incentive Program Among CalFresh Shoppers and Its Association with Food Security Status (P04-010-19)

ObjectivesThis evaluation aimed to examine whether utilization of the California Nutrition Incentive Program (CNIP) by California CalFresh farmers’ market shoppers was associated with food security. MethodsCNIP aims to increase the ability of CalFresh shoppers to make healthy food choices by providing a dollar-for-dollar match, up to a market-specific maximum, for CalFresh benefits used to purchase FV at participating farmers’ markets. In this cross-sectional evaluation CalFresh shoppers were interviewed at a convenience sample of farmers’ markets that did not participate in CNIP (comparison group) and those that provided match incentives up to $10 or $20. Food security status was assessed using questions from the US Department of Agriculture’s validated 6-item food security module. Regression models adjusting for demographic characteristics and clustering by market were used to assess the association between use of CNIP incentives and food security. ResultsA total of 192 CalFresh shoppers were recruited from 10 farmers’ markets throughout California. CalFresh shoppers who used CNIP incentives had significantly lower odds of cutting the size of or skipping meals due to insufficient money for food and significantly lower odds of not eating when hungry because there wasn’t enough money for food compared to CalFresh shoppers who did not use CNIP incentives, holding all other covariates constant. CalFresh shoppers who used CNIP incentives showed a non-significant increase in the odds of being more food secure overall as compared to CalFresh shoppers who did not use CNIP incentives. ConclusionsUnderstanding the effect of CNIP on CalFresh shoppers’ food security has important implications for the further support and promotion of this program. The results of this evaluation suggest that CNIP may positively benefit certain aspects of participants’ food security, but more robust studies are needed to more fully assess the impact of this program. Funding SourcesThis evaluation was funded by the California Department of Food and Agriculture.

Why Do Defaults Affect Behavior? Experimental Evidence from Afghanistan

We report on an experiment examining why default options impact behavior. By randomly assigning employees to different varieties of a salary-linked savings account, we find that default enrollment increases participation by 40 percentage points—an effect equivalent to providing a 50 percent matching incentive. We then use a series of experimental interventions to differentiate between explanations for the default effect, which we conclude is driven largely by present-biased preferences and the cognitive cost of thinking through different savings scenarios. Default assignment also changes employees’ attitudes toward saving, and makes them more likely to actively decide to save after the study concludes. (JEL C93, D14, D91, O12)

Effects of Financial Incentives on Saving Outcomes and Material Well‐Being: Evidence From a Randomized Controlled Trial in Uganda

The use of savings products to promote financial inclusion has increasingly become a policy priority across sub-Saharan Africa, yet little is known about how families respond to varying levels of savings incentives and whether the promotion of incentivized savings in low-resource settings may encourage households to restrict expenditures on basic needs. Using data from a randomized controlled trial in Uganda, we examine: 1) whether low-income households enrolled in an economic-empowerment intervention consisting of matched savings, workshops, and mentorship reduced spending on basic needs and 2) how varied levels of matching contributions affected household savings and consumption behavior. We compared primary school-attending AIDS-affected children (N = 1,383) randomized to a control condition with two intervention arms with differing savings-match incentives: 1:1 (Bridges) and 1:2 (Bridges PLUS). We found that: 1) 24 months post-intervention initiation, children in Bridges and Bridges PLUS were more likely to have accumulated savings than children in the control condition; 2) higher match incentives (Bridges PLUS) led to higher deposit frequency but not higher savings in the bank; 3) intervention participation did not result in material hardship; and 4) in both intervention arms, participating families were more likely to start a family business and diversify their assets.

When Payment Undermines the Pitch

Studies on crowding out document that incentives sometimes backfire—decreasing motivation in prosocial tasks. In the present research, we demonstrated an additional channel through which incentives can be harmful. Incentivized advocates for a cause are perceived as less sincere than nonincentivized advocates and are ultimately less effective in persuading other people to donate. Further, the negative effects of incentives hold only when the incentives imply a selfish motive; advocates who are offered a matching incentive (i.e., who are told that the donations they successfully solicit will be matched), which is not incompatible with altruism, perform just as well as those who are not incentivized. Thus, incentives may affect prosocial outcomes in ways not previously investigated: by crowding out individuals’ sincerity of expression and thus their ability to gain support for a cause.

Race and Ethnicity in Food Systems Work

Race and Ethnicity in Food Systems Work

Potential National Economic Benefits of the Food Insecurity and Nutrition Incentives Program of the U.S. Agricultural Act of 2014

The use of nutrition incentives in conjunction with federal nutrition benefits is intended in part to improve the diet of low-income consumers. The new program created by the U.S. Agricultural Act of 2014 is similar to the nutrition incentives that have been operated by select nonprofits and cities since the early part of the 2010s. The nutrition incentives as specified in the act will match redemptions of Supplemental Nutrition Assistance Program (SNAP) benefits and be used for purchasing only fruits and vegetables. In addition to the potential to provide health benefits, the proposed Food Insecurity and Nutrition Incentive Program may also create economic benefits. Extrapolations of data from a grassroots organization (Wholesome Wave) suggest that the economic benefits of the federal program are an estimated US$58–US$174 million per year, or 922–2,767 jobs per year, depending on how the program is implemented. The effectiveness and impact of the program hinges on the capacity of participating retail outlets, the size of the matching nutrition incentive, and the types of outlets where the SNAP nutrition incentives can be redeemed.

Contingent Match Incentives Increase Donations

The authors propose a new means by which nonprofits can induce donors to give today and commit to giving in the future: contingent match incentives, in which matching is made contingent on the percentage of others who give (e.g., “if X% of others give, we will match all donations”). A field experiment shows that a 75% contingent match (such that matches “kick in” only if 75% of others donate) is most effective in increasing commitment to recurring donations. An online experiment reveals that the 75% contingent match drives commitment to recurring donations because it simultaneously provides social proof while offering a low enough target to remain plausible that the match will occur. A final online experiment demonstrates that the effectiveness of the 75% contingent match extends to one-time donations. The authors discuss the practical and theoretical implications of contingent matches for managers and academics.

Equilibrium Search and the Impact of Equal Opportunities for Women

This paper develops a new equilibrium model of two-sided search where ex-ante heterogenous individuals have general payoff functions and vectors of attributes. The analysis applies to a large class of models, from the non-transferable utility case to the collective household case with bargaining. The approach is powerful for it identifies a simple algorithm which, in the empirical application, is found to rapidly converge to equilibrium. Using indirect inference, we identify the differential effects of women's ability and charm on female match incentives. We use these results to assess the separate impacts of the arrival of equal opportunities for women in the labor market and the advent of the contraceptive pill on female economic activity and matching.

Export Subsidy in Indian Agriculture: An Analysis

Analysing the genesis and history of international trade in agricultural goods, one would find that the root cause of distortion of international trade in agriculture has been trade policies of the states. Massive domestic subsidies have been given by the industrialized countries to their agricultural sector over many years. These subsidies, owing to the lack of matching protection and incentive given by the developing and least developed countries (owing to their weak financial positions and other related factors), have led to excessive production and the consequent dumping of the agricultural product of the developed countries in international markets. This paper analyzes the situation of export subsidy in India and the various attributes relates to the same.

Turning Workers into Savers? Incentives, Liquidity, and Choice in 401 (k) Plan Design

We develop a comprehensive model of 401(k) pension design that reflects the complex tax, savings, liquidity and investment incentives of such plans. Using a new dataset on some 500 plans covering nearly 740,000 workers, we show that employer matching contributions have only a modest impact on eliciting additional retirement saving. In the typical 401(k) plan, only 10 percent of non-highly-compensated workers are induced to save more by match incentives; and 30 percent fail to join their plan at all, despite the fact that the company-proffered match would grant them a real return premium of 1-5% above market rates if they contributed. Such indifference to retirement saving incentives cannot be attributed to liquidity or investment constraints. These results underscore the need for alternative approaches beyond matching contributions, if retirement saving is to become broader-based.

Savings Incentives for Low-and Moderate-Income Families in the United States: Why is the Saver's Credit Not More Effective?

This paper uses data from the largest tax preparer in the United States to estimate the impact of the “saver’s credit,” a US federal program providing financial incentives to encourage retirement savings, on the decision to contribute to an IRA. It finds significant, but very modest, effects. This is contrasted with results from a field experiment showing much larger impacts of clearly presented matching incentives. Various explanations are discussed for why the saver’s credit is not more effective. (JEL: H00, H31, C93, D14)

Saving Incentives for Low- and Middle-Income Families: Evidence from a Field Experiment with H&R Block

This paper analyzes the effects of a large randomized field experiment, carried out with H&R Block, offering matching incentives for IRA contributions at the time of tax preparation. About 15,000 H&R Block clients, in 60 offices in predominantly low- and middle-income neighborhoods in St. Louis, were randomly offered a 20 percent match on IRA contributions, a 50 percent match, or no match (the control group). [© Brookings Institute]

Risk selection and matching in performance-based contracting.

This paper examines selection and matching incentives of performance-based contracting (PBC) in a model of patient heterogeneity, provider horizontal differentiation and asymmetric information. Treatment effectiveness is affected by the match between a patient's illness severity and a provider's treatment intensity. Before PBC, a provider's revenue is unrelated to treatment effectiveness; therefore, providers supply treatments even if their treatment intensities do not match with the patients' severities. Under PBC, budget allocation is positively related to treatment performance; patient-provider mismatch is reduced because patients are referred more often. Using data from the state of Maine, we show that PBC leads to more referrals and better match between illness severity and treatment intensity. Moreover, we find that PBC has a positive but insignificant effect on dumping.

Schools Must Match Incentives To Value Structure

Schools Must Match Incentives To Value Structure