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Tell Me Something I Don’t Already Know:Informedness and External Validity in Information Programs

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  • David P. Byrne
  • Andrea La Nauze
  • Leslie A.Martin

Abstract

Information programs that leverage peer comparisons are used to encourage pro-social behavior in many contexts. We document how imperfect information generates heterogenous responses to treatments involving personalized feedback and peer comparisons. In our field experiment in retail electricity, we find that most households either overestimate or underestimate their relative energy consumption pre-treatment. Households that overestimated respond to new information by temporarily increasing electricity consumption, whereas households that underestimated take steps that lead to long term energy conservation. We explore the implications of these results for the external validity and design of information programs.

Suggested Citation

  • David P. Byrne & Andrea La Nauze & Leslie A.Martin, 2014. "Tell Me Something I Don’t Already Know:Informedness and External Validity in Information Programs," Department of Economics - Working Papers Series 1180, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:1180
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    References listed on IDEAS

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    Cited by:

    1. Mekonnen, Alemu & Hassen, Sied & Jaime, Marcela & Toman, Michael & Zhang, Xiao-Bing, 2023. "The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia," Energy Economics, Elsevier, vol. 124(C).
    2. Tabellini, Guido & d'Adda, Giovanna & Dufwenberg, Martin & Passarelli, Francesco, 2019. "Partial Norms," CEPR Discussion Papers 13593, C.E.P.R. Discussion Papers.
      • Giovanna d’Adda & Martin Dufwenberg & Francesco Passarelli & Guido Tabellini, 2019. "Partial Norms," Working Papers 643, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
      • Giovanna D'Adda & Martin Dufwenberg & Francesco Passarelli & Guido Tabellini, 2019. "Partial Norms," CESifo Working Paper Series 7568, CESifo.
    3. Lei, Xiaoyan & Song, Guangxiang & Su, Xuejuan, 2021. "Information, Belief, and Health Behavior: Evidence from China," Working Papers 2021-9, University of Alberta, Department of Economics.
    4. Christopher R. Knittel & Samuel Stolper, 2019. "Using Machine Learning to Target Treatment: The Case of Household Energy Use," NBER Working Papers 26531, National Bureau of Economic Research, Inc.
    5. Yichong Zhang & Xin Zheng, 2020. "Quantile treatment effects and bootstrap inference under covariate‐adaptive randomization," Quantitative Economics, Econometric Society, vol. 11(3), pages 957-982, July.
    6. Ek, Claes & Söderberg, Magnus, 2024. "Norm-based feedback on household waste: Large-scale field experiments in two Swedish municipalities," Journal of Public Economics, Elsevier, vol. 238(C).
    7. Andor, Mark A. & Gerster, Andreas & Peters, Jörg, 2022. "Information campaigns for residential energy conservation," European Economic Review, Elsevier, vol. 144(C).
    8. Andrea La Nauze, 2023. "Motivation Crowding in Peer Effects: The Effect of Solar Subsidies on Green Power Purchases," The Review of Economics and Statistics, MIT Press, vol. 105(6), pages 1465-1480, November.
    9. Wichman, Casey J., 2017. "Information provision and consumer behavior: A natural experiment in billing frequency," Journal of Public Economics, Elsevier, vol. 152(C), pages 13-33.
    10. Brade, Raphael, 2021. "Social Information and Educational Investment – Nudging Remedial Math Course Participation," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242393, Verein für Socialpolitik / German Economic Association.
    11. Stojanovski, Ognen & Leslie, Gordon W. & Wolak, Frank A. & Huerta Wong, Juan Enrique & Thurber, Mark C., 2020. "Increasing the energy cognizance of electricity consumers in Mexico: Results from a field experiment," Journal of Environmental Economics and Management, Elsevier, vol. 102(C).
    12. Maya Papineau & Nicholas Rivers, "undated". "Visualizing Energy Efficiency: A Picture is Worth More Than 1,022 Words," Carleton Economic Papers 19-10, Carleton University, Department of Economics.
    13. Nicolas Astier, 2016. "Comparative Feedbacks under Incomplete Information," Working Papers hal-01465189, HAL.

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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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