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Charitable donations are often made through intermediaries who can fund themselves from these same donations. Donors who purchase charitable output through an intermediary incur a principal-agent problem with unobservable prices. We compare charitable giving in an experiment with and without...
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. In the model agents receive heterogeneous utility from pure and impure altruism (Andreoni 1989) that permits warm glow to … vary between monetary donations and volunteering, thus allowing preferences for impure altruism to rationalize inefficient … allocation decisions. We define a measure of the price of impure altruism as the additional proportion of income sacrificed by a …
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