The efficiency of modern philanthropy

Abstract

Modern philanthropy assumes that philanthropists make efficient decisions that reflect the public good. However, the desire for self-validation and social approval may incentivize decisions that look good in retrospect rather than those that maximize social impact. This so-called “ex post bias” is particularly problematic for interventions that do not produce easily measurable results or have a long time horizon, as they are less likely to receive credit for their potential benefits. – AI-generated abstract.