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Social Information “Nudges”: An Experiment with Multiple Group References

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  • Shaun Hargreaves Heap
  • Abhijit Ramalingam
  • David Rojo Arjona

Abstract

Social information “nudges” concerning how others perform typically boost individual performances in experiments with one group reference point. However, in many natural settings, sometimes due to policy, there are several such group reference points. We address the complications that such multiple group social information might introduce through an experiment. The boost to average performance is significant and comparable to the one group case. Between‐group inequality does not change. Individual inequality falls, however, because the boost is largest among the pre‐“nudge” very poor performers. Finally, the boost to average performance is highest when individuals freely choose their group affiliations.

Suggested Citation

  • Shaun Hargreaves Heap & Abhijit Ramalingam & David Rojo Arjona, 2017. "Social Information “Nudges”: An Experiment with Multiple Group References," Southern Economic Journal, John Wiley & Sons, vol. 84(1), pages 348-365, July.
    • Handle: RePEc:wly:soecon:v:84:y:2017:i:1:p:348-365
    DOI: 10.1002/soej.12210
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    2. Christoph Bühren & Maria Daskalakis, 2015. "Do not incentivize eco-friendly behavior - Go for a competition to go green!," MAGKS Papers on Economics 201534, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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    More about this item

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D60 - Microeconomics - - Welfare Economics - - - General

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