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Competition as a savings incentive: A field experiment at a homeless shelter

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  • Linardi, Sera
  • Tanaka, Tomomi

Abstract

This paper describes a randomized field experiment testing the impact of a savings competition on the behavior of homeless individuals staying at a transitional shelter. When monetary prizes were offered for achieving the highest saving rates within a particular month, average savings increased by $80 (a 30% increase in savings rate) while income and attendance at case management meetings remained unchanged. However, repeating the competition in the following month had no effect because responsive savers selected out of the shelter after the first month. In summary, while a savings competition can increase savings in the short run, its effect may be limited to the intensive margin and may diminish with repetition.

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  • Linardi, Sera & Tanaka, Tomomi, 2013. "Competition as a savings incentive: A field experiment at a homeless shelter," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 240-251.
    • Handle: RePEc:eee:jeborg:v:95:y:2013:i:c:p:240-251
    DOI: 10.1016/j.jebo.2012.10.012
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    2. Shusaku Sasaki & Naoko Okuyama & Masao Ogaki & Fumio Ohtake, 2017. "Education and pro-family altruistic discrimination against foreigners: Five-country comparisons," ISER Discussion Paper 1002, Institute of Social and Economic Research, Osaka University.
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    5. Ikeda Shin S., 2016. "Graphical analyses of occupation-wise suicide risk in Japan," GRIPS Discussion Papers 16-03, National Graduate Institute for Policy Studies.
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    More about this item

    Keywords

    Field experiment; Savings; Income; Competition; Poverty; Social services; Homelessness; Time inconsistency; Participation;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J1 - Labor and Demographic Economics - - Demographic Economics
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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