How does donation matching change the price of helping recipients?
Matching makes one donor baht create more than one recipient baht, rotating the giving constraint.
Follow the cause and effect
Define s as matching funds per donor baht.
Write c+g/(1+s)=m to reveal the effective price of g.
Solve choice and compare private outlay with recipient receipts.
The model you are using
Conditions for this model
Original model: donor values total receipts, with no matching cap or crowding out of other donors; no claim about current tax rules.
The exam trap
Do not confuse recipient receipts g with the donor outlay g/(1+s).
Connect the reasoning to the graph
What changes
- More matching expands the g-intercept while leaving the c-intercept fixed.
What stays fixed
Original model: donor values total receipts, with no matching cap or crowding out of other donors; no claim about current tax rules.
Keep these conditions throughout the comparison; change only what the case above specifies.
What to inspect
Solve choice and compare private outlay with recipient receipts.
Compare before and after, and locate the conclusion on the graph.
5 MINUTES · TRANSFER THE IDEA
Can you explain it without the lesson?
If matching falls from one-for-one to half-for-one, explain the budget rotation.