Finding the right incentives for blood donation.

In related research, Lacetera and Macis find that public recognition is a powerful motivation for blood donations in Italy as well. People who reach a certain donation threshold receive medals in a public ceremony along with local newspaper coverage. The rate at which people donate blood rises as they approach the threshold for the award. The promise of being publicly recognized for our generosity causes us to give more.

The use of appropriate incentives and social recognition could go a long way toward preventing blood shortages and promoting other types of socially beneficial behavior. Voting comes to mind. Many companies offer employees a few hours of paid time off in which to vote.

Lots of us took advantage of these policies on Nov. 4. As we exited the voting booth, we slapped on our "I voted" stickers for all to see. The incentives to vote aligned nicely in this case: The stickers helped us feel good about ourselves while the company policies ensured that we didn't sacrifice anything of substance. And while reimbursing companies for time off may cost the government some money, the public benefit of a stable, reliable blood supply should be worth it.