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ISRN Economics
Volume 2013 (2013), Article ID 298595, 10 pages
http://dx.doi.org/10.1155/2013/298595
Research Article

Fund-Raising Games Played on a Network

Department of Economics, Southern Illinois University, Carbondale, IL 62901, USA

Received 30 August 2013; Accepted 1 October 2013

Academic Editors: D. Dave, D. Mitra, and E. Silva

Copyright © 2013 Alison Watts. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

It is well known among fund-raisers that many people contribute to charities or organizations only when asked and that large donations are more likely to occur as a fund-raiser increases the time spent soliciting and/or researching a potential donor. As fund-raisers can only spend time with research donors that they are aware of, the relationship (or links) between fund-raisers and donors is quite important. We model a fund-raising game where fund-raisers can only solicit donors whom they are tied to and analyze how this network influences donation requests. We show that if this network is incomplete and if donors experience extreme donor fatigue, then fund-raisers will spend more time soliciting donors that other fund-raisers are also tied to and less time soliciting donors that they are the only fund-raiser tied to. If instead donors experience mild donor fatigue, then fund-raisers prefer donors that they are the only fund-raiser tied to over donors that are shared with other fund-raisers. If donors are potential givers with no donor fatigue, then multiple equilibria may exist. Stochastic stability is used to refine the number of equilibria in this case, and conditions are given under which the unique stochastically stable equilibrium is efficient.