Will There Be Blood? Incentives and Displacement Effects in Pro-Social Behavior
Open accessAbstract
We present evidence from nearly 14,000 American Red Cross blood drives and from a natural field experiment showing that economic incentives have a positive effect on blood donations without increasing the fraction of donors who are ineligible to donate. The effect increases with the incentive's economic value. However, a substantial proportion of the increase in donations is explained by donors leaving neighboring drives without incentives to attend drives with incentives; this displacement also increases with the economic value of the incentive. We conclude that extrinsic incentives stimulate pro-social behavior, but unless displacement effects are considered, the effect may be overestimated. (JEL D64, H41, I12)
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Some incentives do not undermine motivation or behavior, such as verbal rewards, while others have neutral or positive effects on behaviors.
“Some incentives do not undermine motivation or behavior, such as verbal rewards (Deci et al. 1999), while others have neutral or positive effects on behaviors (Lacetera et al. 2012).”
From Unintended reward costs: the effectiveness of customer referral reward programs for innovative products and services (2019) · cites this paper as Lacetera et al. 2012
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Kwon, H., & Shorrer, R. I. (2026) · Games and Economic Behavior · doi:10.1016/j.geb.2026.01.003 · Cited by 9 · see citing works
- Authors
- Lacetera, N., Macis, M., & Slonim, R.
- Affiliations
- University of Toronto (CA)
- Johns Hopkins University (US)
- The University of Sydney (AU)
- Venue
- American Economic Journal: Economic Policy
- Publisher
- American Economic Association
- Published
- 2012-02-01
- Volume
- 4
- Issue
- 1
- Pages
- 186-223
- ISSN
- 1945-7731 (ISSN-L)
- 1945-774X
- OpenAlex
- W2036522266
- Cited by
- 222
- References
- 20
- Citations by year
- 2026: 5 · 2025: 8 · 2024: 11 · 2023: 11 · 2022: 19 · 2021: 15 · 2020: 14 · 2019: 44 · 2018: 15 · 2017: 11 · 2016: 16 · 2015: 14 · 2014: 12 · 2013: 12 · 2012: 10
- FWCI
- 34.96
- Type
- journal article
- Language
- en
- Open access
- green
- www.aeaweb.org
- Locations
- American Economic Journal Economic Policy (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- Archivio istituzionale della ricerca (Alma Mater Studiorum Università di Bologna) (submittedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Blood donation and transfusion practices
- Social Sciences › Safety Research › Experimental Behavioral Economics Studies
- Social Sciences › Sociology and Political Science › Nonprofit Sector and Volunteering
- Keywords
- blood donation, economic incentives, extrinsic rewards, displacement effects, prosocial behavior, incentive magnitude, donor eligibility, charitable giving
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