Nudging Drivers to Safety: Evidence from a Field Experiment

51 Pages Posted: 22 Nov 2019 Last revised: 2 Jun 2020

See all articles by Vivek Choudhary

Vivek Choudhary

Nanyang Technological University (NTU)

Masha Shunko

Foster School of Business, University of Washington

Serguei Netessine

The Wharton School, University of Pennsylvania

Seongjoon Koo

affiliation not provided to SSRN

Date Written: June 02, 2020

Abstract

Driving is an integral component of many operational systems, and any small improvement in driving quality can have a significant effect on accidents, traffic, pollution, and the economy in general. However, making improvements is challenging given the complexity and multidimensionality of driving as a task.
We used telematics technology (i.e., real-time sensor data from accelerometer, GPS, and gyroscope in a mobile device) to measure driving performance as well as to deliver nudges to the drivers via notifications. Leveraging a smartphone application launched by our industry partners, we sent three types of performance nudges to drivers, indicating how they performed on the current trip with respect to their personal best, personal average, and latest driving performance.
We found that personal best and personal average nudges improved driving performance compared to the control group, which received no nudges, by, on average, 18.17% and 18.71% standard deviations of the performance scores calculated by the application. This improvement translates to an increase in the inter-accident time by nearly 1.8 years, while also improving driving performance consistency as measured by the standard deviation of the performance score. Using generalized random forests, we showed that high-performing drivers who are not frequent feedback seekers benefit the most from personal best nudges, while low-performing drivers who are also frequent feedback seekers benefit the most from the personal average nudges. Using these findings, we constructed personalized nudges that, according to our counter-factual estimates, should significantly outperform both of these nudges. Finally, we conducted an online experiment in which we replicated our key findings in a non-driving context, and we further identified changes in participants’ efforts in response to different nudges as the mechanism behind the results.

Keywords: Nudges, Empirical Operations Management, Behavioral Operations Management, Field Experiments

Suggested Citation

Choudhary, Vivek and Shunko, Masha and Netessine, Serguei and Koo, Seongjoon, Nudging Drivers to Safety: Evidence from a Field Experiment (June 02, 2020). INSEAD Working Paper No. 2020/28/TOM, Available at SSRN: https://ssrn.com/abstract=3491302 or http://dx.doi.org/10.2139/ssrn.3491302

Vivek Choudhary (Contact Author)

Nanyang Technological University (NTU) ( email )

College of Business, NTU,
Singapore, 639798
Singapore

HOME PAGE: http://sites.google.com/view/vkchoudhary

Masha Shunko

Foster School of Business, University of Washington ( email )

PACCAR Hall
Seattle, WA 47185
United States

Serguei Netessine

The Wharton School, University of Pennsylvania ( email )

3730 Walnut Street
Philadelphia, PA 19104-6367
United States
(215) 573 3571 (Phone)

HOME PAGE: http://www.netessine.com

Seongjoon Koo

affiliation not provided to SSRN

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