Incentivized Learning and Attention-driven Treatment Effects: a Field Experiment on Energy Conservation
85 Pages Posted: 9 Nov 2022 Last revised: 26 Dec 2023
Date Written: December 19, 2023
Abstract
We investigate how incentives affect learning when attention is multidimensional. Households are provided high-frequency information on gas usage and/or monetary incentives to reduce energy consumption. Information coupled with incentives leads to lower consumption, and information without incentives leads to higher consumption. Higher consumption persists a year later for those who did not receive incentives. Both groups accessed the same information technology to learn preferences and costs for warmer/colder indoor temperatures yet have different durable treatment effects. Incentives focused learning on cost, rather than comfort - those offered incentives explored colder house temperatures, while those without incentives tried a warmer house. Objective, real-time information can produce opposite behavior, as incentives affect learning.
Keywords: Learning, selective attention, incentives, field experiment, energy usage
JEL Classification: D91, D12, C93
Suggested Citation: Suggested Citation