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The Habit-Forming Effects of Feedback: Evidence From a Large-Scale Field Experiment

Author

Listed:
  • David P. Byrne
  • Lorenz Goette
  • Leslie A. Martin
  • Lucy Delahey
  • Alana Jones
  • Amy Miles
  • Samuel Schob
  • Thorsten Staake
  • Verena Tiefenbeck

Abstract

We provide a unique test of competing models of persistence in behavior. We propose a new attention-based behavioral mechanism for habit formation and contrast its predictions with the Stigler and Becker (1977) consumption-based mechanism. We test both mechanisms using a large-scale field experiment in shower water consumption. Our experiment varies cycles of household-level real-time feedback that temporarily draws attention to individuals’ water consumption. Combining this design with real-time consumption data, we test the mechanism for persistence in behavior that our experiment generates. Our results strongly support a dynamic attention-based model of habit over the workhorse habit stock model used in economics.

Suggested Citation

  • David P. Byrne & Lorenz Goette & Leslie A. Martin & Lucy Delahey & Alana Jones & Amy Miles & Samuel Schob & Thorsten Staake & Verena Tiefenbeck, 2021. "The Habit-Forming Effects of Feedback: Evidence From a Large-Scale Field Experiment," CRC TR 224 Discussion Paper Series crctr224_2021_285, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2021_285
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp285
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    Citations

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    Cited by:

    1. Bartels, Lara & Werthschulte, Madeline, 2022. "More than just a Price Decrease: Field Experimental Evidence on the Mechanisms of an Energy Efficiency Subsidy," VfS Annual Conference 2022 (Basel): Big Data in Economics 264091, Verein für Socialpolitik / German Economic Association.
    2. Andor, Mark Andreas & Götte, Lorenz & Price, Michael Keith & Schulze Tilling, Anna & Tomberg, Lukas, 2023. "Differences in how and why social comparisons and real-time feedback impact resource use: Evidence from a field experiment," Ruhr Economic Papers 1059, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Eduard Alonso-Pauli & Pau Balart & Lara Ezquerra & Inigo Hernandez-Arenaz, 2022. "Understanding Soft Commitment: Evidence from a Field Experiment on Recycling," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 2201, Departamento de Economía - Universidad Pública de Navarra.

    More about this item

    Keywords

    Habit formation; Attention; Realtime feedback; Water usage; Randomized Control Trial;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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