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Spillover effects of nudges

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  • Nafziger, Julia

Abstract

We consider a theoretical model where an individual pays limited attention to decision relevant factors. Nudges increase attention to a factor, but can have, at the same time, attentional spillover effects to other factors. As a consequence, nudges can have detrimental effects on desired behavior and consumption utility. Further, measuring behavioral changes in the nudged domain sometimes does not yield the right conclusions about the effects of the nudge on utility — even with an additive separable utility function.

Suggested Citation

  • Nafziger, Julia, 2020. "Spillover effects of nudges," Economics Letters, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:ecolet:v:190:y:2020:i:c:s016517652030080x
    DOI: 10.1016/j.econlet.2020.109086
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    References listed on IDEAS

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    Cited by:

    1. Sasaki, Shusaku & Saito, Tomoya & Ohtake, Fumio, 2022. "Nudges for COVID-19 voluntary vaccination: How to explain peer information?," Social Science & Medicine, Elsevier, vol. 292(C).
    2. Koch, Alexander K. & Monster, Dan & Nafziger, Julia, 2023. "Nudging in Complex Environments," IZA Discussion Papers 16137, Institute of Labor Economics (IZA).
    3. Steffen Altmann & Andreas Grunewald & Jonas Radbruch, 2024. "The Double Dividend of Attention-Releasing Policies," CESifo Working Paper Series 11069, CESifo.
    4. Castro, Juan Francisco & Velásquez, Daniel & Beltrán, Arlette & Yamada, Gustavo, 2022. "The direct and indirect effects of messages on tax compliance: Experimental evidence from Peru," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 483-518.
    5. Bonev, Petyo, 2023. "Behavioral Spillovers," Economics Working Paper Series 2303, University of St. Gallen, School of Economics and Political Science.
    6. Steffen Altmann & Andreas Grunewald & Jonas Radbruch, 2024. "The Double Dividend of Nudges," Rationality and Competition Discussion Paper Series 503, CRC TRR 190 Rationality and Competition.

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    More about this item

    Keywords

    Nudging; Limited attention; Spillover effects;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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