Fundraisers often start their campaigns by soliciting the wealthier, more recognized, and respected individuals in a community. We examine whether the success of this solicitation ordering in part can be attributed to the fact that it enables individuals to select organizations that have a highstatus donor base. Assuming that individuals prefer to associate with individuals of higher social ranking we use a simple linear model to show that both aggregate donations and earnings are larger when high-status donors are solicited first. We investigate the predicted comparative statics using the experimental laboratory. Inducing a status differential we reverse the contribution ordering between participants of high and low status. Consistent with current fundraising practice, we find that low-status followers are likely to mimic donations by high-status leaders and this encourages highstatus leaders to give. Donations are therefore larger when individuals of high status give before rather than after those of low status.
Fundraisers often start their campaigns by soliciting the wealthier, more recognized and respected individuals in a community. We examine whether an explanation for such a solicitation ordering may be that people prefer to associate with those of higher social ranking than themselves. Using a simple linear example we demonstrate that concerns for status may give rise to an optimal solicitation ordering similar to that used by fundraisers. Aggregate contributions and earnings are larger when high-status donors are solicited before rather than after those of low status. To investigate this comparative static experimentally we induce a status differential in the laboratory and reverse the contribution order between high-and low-status participants. We find that low-status followers are likely to mimic contributions by high-status leaders and this encourages highstatus leaders to contribute. Contributions are therefore larger when individuals of high status contribute before, rather than after, those of low status. 1 We thank participants at seminars at Harvard, NYU, OSU, and Texas A&M for very helpful comments. We are grateful to the NSF for generous financial support.
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