preview

The Pros And Cons Of Voluntary Conforming

Decent Essays

Moreover, because such processes are often decentralized, as in the case of voluntary giving, and motivated by fairness, efficiency or reciprocity rather than tax penalties, they can often be achieved at reduced cost.

The charitable deduction is able to harness these dynamics by attaching structural incentives to informal, nonprofit pool selection, and by enabling donors to choose when, how much, and to whom to give, and to withdraw from underperforming donative pools and join superior ones. The government need not compensate donors to join more efficient, ethical organizations. Instead, informal motives and norms can gradually help to winnow out poor distributors of charitable goods, and encourage high performing alternatives. Empirical analysis suggests that where charitable interaction is dynamic and the rights to exit and entry are robust, collective outcomes nearly always improve. Conversely, stagnation is more likely where dynamic interaction is preempted, mobility is hindered, and norms of efficiency are more difficult or costly to enforce. Indeed, while the …show more content…

Because giving often directly involves reputation and personal identity, distributing resources in ways that foster or preempt such dimensions will generally yield disparate outcomes. Empirical data suggest that individuals act more generously when actions are observed than when they are anonymous, and that face-to-face solicitations elicit higher donations than those made through impersonal means. The effectiveness of campaigns to harness “conspicuous compassion,” such as wearing pink ribbons, yellow bracelets or red poppies further highlights this effect. Whether to cultivate a positive self-image, avoid damaging social relationships or achieve other ends, identity plays a central role in altruistic

Get Access