Study shows eBay Charity auctions command higher prices than regular listings

[Kristijntje]

Non-profits, companies and individuals seeking an alternative way to raise funds for their respective causes might consider selling a product.

It's long been assumed that people are willing to pay more for an item if they know a portion of the proceeds will go to charity. Evidence from a recent study conducted by two professors in the Olin School of Business at Washington University in St. Louis confirms consumers are willing to pay a premium for a good cause...

On average, McManus said, these products have an estimated premium about 5 percent higher than identical items with no connection to a charity...

The research indicated that the little bit extra that people are willing to pay diminishes as the auction item gets more expensive. It's as if people have in mind a maximum donation that they are willing to make to a charity, the researchers said. As the auctioned item's price rises, that maximum becomes a smaller percentage of an item's price...

full article: http://news-info.wustl.edu/tips/page/normal/8390.html