Incentives and Defaults Can Increase COVID-19 Vaccine Intentions and Test Demand

Management Science, Forthcoming

65 Pages Posted: 13 Apr 2021 Last revised: 6 Dec 2021

See all articles by Marta Serra-Garcia

Marta Serra-Garcia

University of California, San Diego (UCSD) - Rady School of Management

Nora Szech

Karlsruhe Institute of Technology

Multiple version iconThere are 2 versions of this paper

Date Written: November 29, 2021

Abstract

Willingness to vaccinate and test are critical in the COVID-19 pandemic. We study the effects of two measures to increase the support of vaccination and testing: defaults and monetary compensations. Some organizations, such as restaurants, fire departments, hospitals, or governments in some countries, use these measures. Yet there is the concern that compensations could erode intrinsic motivation and decrease vaccination intentions. We show that, in the early stages of the pandemic, both approaches, compensations and defaults, significantly increased COVID-19 test demand and vaccine intentions. For vaccines, compensations need to be large enough because low compensations can backfire. We estimate heterogeneous treatment effects to document which groups are more likely to respond to these measures. The results show that defaults and avoidance of small compensations are especially important for individuals who are more skeptical of the vaccine, measured by their trust in the vaccine and their political views. Hence, both measures could be used in a targeted manner to achieve stronger results.

Note: Funding Statement: Funding provided by authors' research budgets at the university.

Declaration of Interests: There is no competing interest.

Ethics Approval Statement: This project was reviewed and approved by the University of California, San Diego institutional review board. Informed consent was obtained from participants.

Keywords: choice architecture, defaults, incentives, COVID-19, vaccine hesitancy, test avoidance

JEL Classification: D01, D04, I12

Suggested Citation

Serra-Garcia, Marta and Szech, Nora, Incentives and Defaults Can Increase COVID-19 Vaccine Intentions and Test Demand (November 29, 2021). Management Science, Forthcoming , Available at SSRN: https://ssrn.com/abstract=3818182 or http://dx.doi.org/10.2139/ssrn.3818182

Marta Serra-Garcia

University of California, San Diego (UCSD) - Rady School of Management ( email )

9500 Gilman Drive
Rady School of Management
La Jolla, CA 92093
United States

Nora Szech (Contact Author)

Karlsruhe Institute of Technology ( email )

Kaiserstra├če 12
Karlsruhe, Baden W├╝rttemberg 76131
Germany

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