Motivation Crowding in Real Consumption Decisions: Who is Messing with My Groceries?

16 Pages Posted: 26 Feb 2014

See all articles by Grischa Perino

Grischa Perino

University of Hamburg

Luca A. Panzone

University of Newcastle

Timothy M. Swanson

University College London - Department of Economics and Faculty of Law

Date Written: April 2014

Abstract

We present evidence of crowding out of intrinsic motivation in real purchasing decisions from a field experiment in a large supermarket chain. We compare three instruments, a label, a subsidy, and a neutral price change, in their ability to induce consumers to switch from dirty to clean products. Interestingly, a subsidy framed as an intervention is less effective than either a label or a neutrally framed price change. We argue that this provides a new explanation for crowding behavior: consumers are resistant to having the line of demarcation between public and private decision making moved in either direction.

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

Suggested Citation

Perino, Grischa and Panzone, Luca A. and Swanson, Timothy M., Motivation Crowding in Real Consumption Decisions: Who is Messing with My Groceries? (April 2014). Economic Inquiry, Vol. 52, Issue 2, pp. 592-607, 2014, Available at SSRN: https://ssrn.com/abstract=2401371 or http://dx.doi.org/10.1111/ecin.12024

Grischa Perino (Contact Author)

University of Hamburg ( email )

Welckerstr. 8
Hamburg, 20354
Germany

HOME PAGE: http://sites.google.com/site/gperinosite/

Luca A. Panzone

University of Newcastle ( email )

5 Barrack Road
Devonshire Building
NEWCASTLE UPON TYNE, NE1 7RU
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)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1
Abstract Views
345
PlumX Metrics