Al Roth has an interesting post up today at his Market Design blog referencing some data on the crowding out effect, i.e., the idea that if you pay people for something that they are currently donating, altruists will be “crowded out” and you’ll end up with less of the thing that you need. It turns out that the data just don’t support that theory. Check it out.
Alvin Roth
Incentives for Blood Donation
Al Roth has an interesting post up today at his Market Design blog referencing some data on the crowding out effect, i.e., the idea that if you pay people for something that they are currently donating, altruists will be “crowded out” and you’ll end up with less of the thing that you need. It turns…