Do you have too many facebook friends?
If you have than the New research suggests the more
friends we have on Facebook, the less likely we are to share information about
charitable causes.
Economist Professor Kimberley Scharf, from the Centre for
Competitive Advantage in the Global Economy (CAGE) at the University of
Warwick, claims when we have larger online social networks, we rely on other
people to pass on information about opportunities to give. This phenomenon is
called 'free riding'.
Professor Scharf also suggests we may even rely on others
to donate. She will present her research paper 'Private Provision of Public
Goods and Information Diffusion in Social Groups' in Dresden at the 2012
International Institute of Public Finance Congress on 16-19th August.
In the paper, she develops an economic model of giving
where people share overlapping social neighbours.
Professor Scharf said: "For example, with Facebook I
have friends and my friends have friends. I wanted to see if the number of
social connections individuals have affects the way that information about
quality of charity provision is diffused, and if it does, what the implications
are for total giving.
"Information transmission about giving opportunities
is undermined by 'free riding' incentives -- I count on other neighbours to
convey information and so save on the effort of doing it myself. If there is
less information flowing about who are the more effective charities, then not all
donations will be going to the best performing charity and there will be a
reduction in the charitable good or service. As well as relying on others to
pass on information, it may also be true that people are even relying on others
to donate."
Professor Scharf said her study showed there is more
giving in smaller, closer-knit groups of individuals who share common
interests.
She said: "This is what matters, the closeness of
social interactions: large loosely connected groups share information less
effectively than smaller, better integrated groups.
"Economists have traditionally viewed giving as an
individual choice. It is time for a rethink -- we are long overdue in asking
questions about how social connections shape giving. The answers are important,
they will help us understand how better to target private and public resources
aimed at promoting giving."
Professor Scharf added social interactions are not always
good for giving. People may share information about worthy causes or good
providers, but if there are too many people sharing information, the messages
could get lost in the noise of the crowd.
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