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Because I'm worth it: a lab-field experiment on the spillover effects of incentives in health

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  • Dolan, Paul
  • Galizzi, Matteo M.

Abstract

We conduct a controlled lab-field experiment to directly test the short-run spillover effects of one-off financial incentives in health. We consider how incentives affect effort in a physical activity task – and then how they spillover to subsequent eating behaviour. Compared to a control group, we find that low incentives increase effort and have little effect on eating behaviour. High incentives also induce more effort but lead to significantly more excess calories consumed. The key behavioural driver appears to be the level of satisfaction associated with the physical activity task, which ‘licensed’ highly paid subjects to indulge in more energy-dense food.

Suggested Citation

  • Dolan, Paul & Galizzi, Matteo M., 2014. "Because I'm worth it: a lab-field experiment on the spillover effects of incentives in health," LSE Research Online Documents on Economics 60356, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:60356
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    Cited by:

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    2. Picard, Julien & Banerjee, Sanchayan, 2023. "Behavioural spillovers unpacked: estimating the side effects of social norm nudges," LSE Research Online Documents on Economics 120566, London School of Economics and Political Science, LSE Library.
    3. Dolan, Paul & Galizzi, Matteo M. & Navarro-Martinez, Daniel, 2015. "Paying people to eat or not to eat? Carryover effects of monetary incentives on eating behaviour," Social Science & Medicine, Elsevier, vol. 133(C), pages 153-158.
    4. Galizzi Matteo M. & Miraldo Marisa, 2017. "Are You What You Eat? Healthy Behaviour and Risk Preferences," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(1), pages 1-25, February.
    5. Dolan, Paul & Galizzi, Matteo M., 2015. "Like ripples on a pond: Behavioral spillovers and their implications for research and policy," Journal of Economic Psychology, Elsevier, vol. 47(C), pages 1-16.

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    More about this item

    Keywords

    Incentives in health; spillover effects; licensing; hidden costs of incentives;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D0 - Microeconomics - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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