Abstract

http://ssrn.com/abstract=1775072
 
 

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Motivation Crowding in Real Purchasing Decisions: Price vs. Quantity Based Instruments


Grischa Perino


University of Hamburg

Luca A. Panzone


University College London

Timothy M. Swanson


University College London - Department of Economics and Faculty of Law

August 26, 2011


Abstract:     
We present the first evidence of motivation crowding in real purchasing decisions from a field experiment in a large supermarket chain. We compare three instruments aiming to induce climate friendly choices: labels, subsidies, and product bans and neutrally framed versions of the latter two. Labels and bans activate intrinsic motivation of consumers. A subsidy framed as an intervention is less effective than either a label or an equivalent but neutrally framed price change, i.e. when combined, information and price change perform worse than each individually. We therefore find markedly different effects of price and quantity based instruments on intrinsic motivation.

Number of Pages in PDF File: 55

Keywords: Motivation crowding, Prices vs. Quantities, Climate policy, Diet choices, Field experiment

JEL Classification: C93, Q18, Q54, Q58, H23, H41

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Date posted: March 5, 2011 ; Last revised: September 21, 2011

Suggested Citation

Perino, Grischa and Panzone, Luca A. and Swanson, Timothy M., Motivation Crowding in Real Purchasing Decisions: Price vs. Quantity Based Instruments (August 26, 2011). Available at SSRN: http://ssrn.com/abstract=1775072 or http://dx.doi.org/10.2139/ssrn.1775072

Contact Information

Grischa Perino (Contact Author)
University of Hamburg ( email )
Allende-Platz 1
Hamburg, 20146
Germany
HOME PAGE: http://sites.google.com/site/gperinosite/
Luca A. Panzone
University College London ( email )
Gower Street
London, WC1E 6BT
United Kingdom
Timothy M. Swanson
University College London - Department of Economics and Faculty of Law ( email )
Gower Street
London WC1E 6BT, WC1E 6BT
United Kingdom
+44 (020) 7-679-58 (Phone)
+44 (020) 7-6016-2772 (Fax)
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