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On the Transparency of Nudges: An Experiment

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  • Sandro Casal
  • Francesco Guala
  • Luigi Mittone

Abstract

We investigate the effects that transparency may have on people’s reactions to a simple nudge. Using an incentivized task and eliminating possible confounds due to strategic reasoning, we test two behavioral predictions: (a) that increasing the quantity and quality of information affects significantly the efficacy of nudges; and (b) that people mind about being nudged and reverse their decisions when the behavioral policy is transparent. Our results indicate that transparency does not necessarily trigger reactance (people in general do not mind being nudged), but the quality and quantity of information can have a significant effect on the efficacy of a behavioral policy.

Suggested Citation

  • Sandro Casal & Francesco Guala & Luigi Mittone, 2019. "On the Transparency of Nudges: An Experiment," CEEL Working Papers 1902, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    • Handle: RePEc:trn:utwpce:1902
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    File URL: http://www-ceel.economia.unitn.it/papers/papero19_02.pdf
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    References listed on IDEAS

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    5. Bruns, Hendrik & Kantorowicz-Reznichenko, Elena & Klement, Katharina & Luistro Jonsson, Marijane & Rahali, Bilel, 2018. "Can nudges be transparent and yet effective?," Journal of Economic Psychology, Elsevier, vol. 65(C), pages 41-59.
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    Keywords

    Nudge; Overconfidence; Transparency; Reactance;
    All these keywords.

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