THESIS
2020
x, 78 pages : color illustrations ; 30 cm
Abstract
This thesis consists of two essays on socially responsible operations: social venture's innovative business model and charitable giving. The first essay investigates a prevailing business model among social enterprises: Buy-one-give-one (BOGO). We find that the social enterprise can create more social welfare by differentiating its products into high-end products for purchasers (the rich) and low-end products for recipients (the poor). We also show that BOGO provides higher social welfare than cross-subsidy when either the social enterprise is highly socially responsible or the social gap between the rich and the poor is significant. The second essay studies how different subsidy strategies affect people's charitable giving behavior. We show that if the donation amount is large relative...[
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This thesis consists of two essays on socially responsible operations: social venture's innovative business model and charitable giving. The first essay investigates a prevailing business model among social enterprises: Buy-one-give-one (BOGO). We find that the social enterprise can create more social welfare by differentiating its products into high-end products for purchasers (the rich) and low-end products for recipients (the poor). We also show that BOGO provides higher social welfare than cross-subsidy when either the social enterprise is highly socially responsible or the social gap between the rich and the poor is significant. The second essay studies how different subsidy strategies affect people's charitable giving behavior. We show that if the donation amount is large relative to the account balance, the organization should apply a rebate strategy. Otherwise, the organization should adopt matching tactics. These results are empirically validated by data from two field experiments and one laboratory experiment.
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