Habit Formation and Rational Addiction: A Field Experiment in Handwashing

85 Pages Posted: 22 Sep 2017

See all articles by Reshmaan Hussam

Reshmaan Hussam

Harvard Business School

Atonu Rabbani

University of Dhaka

Giovanni Reggiani

Massachusetts Institute of Technology (MIT)

Natalia Rigol

Harvard University

Date Written: September 12, 2017

Abstract

Regular handwashing with soap is believed to have substantial impacts on child health in the developing world. Most handwashing campaigns have failed, however, to establish and maintain a regular practice of handwashing. Motivated by scholarship that suggests handwashing is habitual, we design, implement and analyze a randomized field experiment aimed to test the main predictions of the rational addiction model. To reliably measure handwashing, we develop and produce a novel soap dispenser, within which a time-stamped sensor is embedded. We randomize distribution of these soap dispensers as well as provision of monitoring (feedback reports) or monitoring and incentives for daily handwashing. Relative to a control arm in which households receive no dispenser, we find that all treatments generate substantial improvements in child health as measured by child weight and height. Our key test of rational addiction is implemented by informing a subset of households about a future boost in monitoring or incentives. We find that (1) both monitoring and incentives increase handwashing relative to receiving only a dispenser; (2) these effects persist after monitoring or incentives are removed; and (3) the anticipation of monitoring increases handwashing rates significantly, implying that individuals internalize the habitual nature of handwashing and accumulate habit stock accordingly. Our results are consistent with the key predictions of the rational addiction model, expanding its relevance to settings beyond what are usually considered 'addictive' behaviors.

Suggested Citation

Hussam, Reshmaan and Rabbani, Atonu and Reggiani, Giovanni and Rigol, Natalia, Habit Formation and Rational Addiction: A Field Experiment in Handwashing (September 12, 2017). Harvard Business School BGIE Unit Working Paper No. 18-030. Available at SSRN: https://ssrn.com/abstract=3040729 or http://dx.doi.org/10.2139/ssrn.3040729

Reshmaan Hussam (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Atonu Rabbani

University of Dhaka

Giovanni Reggiani

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Natalia Rigol

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

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