In a series of recent experiments (Davis, Millner and Reilly, 2005, Eckel andGrossman, 2003, 2005a-c, 2006), matching subsidies generate significantly highercharity receipts than do theoretically equivalent rebate subsidies. This paperreports a laboratory experiment conducted to examine whether the higher receiptsare attributable to a relative preference for matching subsidies or to an“isolation effect” (McCaffery and Baron, 2003, 2006). Somepotential policy implications of isolation effects on charitable contributionsare also considered.
