Motivation Crowding in Real Purchasing Decisions: Price vs. Quantity Based Instruments
55 Pages Posted: 5 Mar 2011 Last revised: 10 Sep 2021
Date Written: 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.
Keywords: Motivation crowding, Prices vs. Quantities, Climate policy, Diet choices, Field experiment
JEL Classification: C93, Q18, Q54, Q58, H23, H41
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Incentives and Prosocial Behavior
By Roland Bénabou and Jean Tirole
-
Incentives and Prosocial Behavior
By Roland Bénabou and Jean Tirole
-
Incentives and Prosocial Behavior
By Roland Bénabou and Jean Tirole
-
Do Incentive Contracts Crowd Out Voluntary Cooperation?
By Ernst Fehr and Simon Gächter
-
Do Incentive Contracts Crowd Out Voluntary Cooperation?
By Ernst Fehr and Simon Gächter
-
Psychological Foundations of Incentives
By Ernst Fehr and Armin Falk
-
Psychological Foundations of Incentives
By Armin Falk and Ernst Fehr
-
Do Incentive Contracts Undermine Voluntary Cooperation?
By Ernst Fehr and Simon Gächter
-
The Hidden Costs and Returns of Incentives - Trust and Trustworthiness Among CEOS
By Ernst Fehr and John A. List
-
Honesty in Managerial Reporting
By John Evans, R. Lynn Hannan, ...