Recent experimental evidence suggests that donors are averse to giving to charities with high overhead ratios. This paper asks whether donors are also averse to giving to charities spending a high share of the donations on unavoidable administrative expenses. The results of an experiment with a...

We design and implement the first real-effort experiment that can jointly estimate present bias (β) and sophistication (bβ), with separate preference parameters for money (βm, bβm) and effort (βe, bβe). In our study, participants chose to (and predicted to) complete 14% (and 10%) fewer...