The hidden costs of nudging: Experimental evidence from reminders in fundraising
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
Standard
The hidden costs of nudging : Experimental evidence from reminders in fundraising. / Damgaard, Mette Trier; Gravert, Christina.
I: Journal of Public Economics, Bind 157, 01.01.2018, s. 15-26.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - JOUR
T1 - The hidden costs of nudging
T2 - Experimental evidence from reminders in fundraising
AU - Damgaard, Mette Trier
AU - Gravert, Christina
PY - 2018/1/1
Y1 - 2018/1/1
N2 - We document the hidden costs of a popular nudge and show how these costs distort policy making when neglected. In a field experiment with a charity, we find reminders increasing intended behavior (donations), but also increasing avoidance behavior (unsubscriptions from the mailing list). We develop a dynamic model of donation and unsubscription behavior with limited attention. We test the model in a second field experiment which also provides evidence that the hidden costs are anticipated. The model is estimated structurally to perform a welfare analysis. Not accounting for hidden costs overstates the welfare effects for donors by factor ten and hides potential negative welfare effects of the charity.
AB - We document the hidden costs of a popular nudge and show how these costs distort policy making when neglected. In a field experiment with a charity, we find reminders increasing intended behavior (donations), but also increasing avoidance behavior (unsubscriptions from the mailing list). We develop a dynamic model of donation and unsubscription behavior with limited attention. We test the model in a second field experiment which also provides evidence that the hidden costs are anticipated. The model is estimated structurally to perform a welfare analysis. Not accounting for hidden costs overstates the welfare effects for donors by factor ten and hides potential negative welfare effects of the charity.
KW - Avoiding-the-ask
KW - Charitable giving
KW - Field experiment
KW - Inattention
KW - Nudge
KW - Reminders
UR - http://www.scopus.com/inward/record.url?scp=85035120307&partnerID=8YFLogxK
U2 - 10.1016/j.jpubeco.2017.11.005
DO - 10.1016/j.jpubeco.2017.11.005
M3 - Journal article
AN - SCOPUS:85035120307
VL - 157
SP - 15
EP - 26
JO - Journal of Public Economics
JF - Journal of Public Economics
SN - 0047-2727
ER -
ID: 210838480