Working Paper: CEPR ID: DP18148
Authors: Alexander K. Koch; Dan Münster; Julia Nafziger
Abstract: We study the effects of reminder nudges using a novel experimental approach based on a computer game. The game exposes subjects to a complex environment in which they have to pay attention to and perform multiple actions within a short period of time. The set-up allows us, first, to test the effect of reminders both on reminded and non-reminded actions and thus to observe whether reminders have (positive or negative) spillovers. Second, we investigate spillovers between multiple nudges by testing the effect of scaling up the number of reminded actions. Third, we study intertemporal spillovers by investigating whether the effects of having been exposed to reminders persist after reminders are withdrawn. We observe thatreminders have positive effects in the short run -- multiple reminders more so than single reminders: while reminders lead to crowding-out of non-reminded actions, the positive effect on the reminded actions dominates. Yet, after withdrawal of the reminders, the negative spillover effect persists, while the positive effect partially fades out so that, overall, reminders have no effect.
Keywords: nudging; spillover effects; attention; reminders; persistence; game-based experiments
JEL Codes: C9; D91
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Reminders (Y60) | Performance of reminded actions (Y10) |
| Performance of reminded actions (Y10) | Overall performance (P47) |
| Reminders (Y60) | Performance of non-reminded actions (C41) |
| Scaling up the number of reminded actions (C90) | Performance in targeted behaviors (C92) |
| Scaling up the number of reminded actions (C90) | Negative spillover effects on non-targeted behaviors (D91) |
| Reminders (Y60) | Intertemporal spillovers (D15) |
| Intertemporal spillovers (D15) | Persistent behavior after reminders are withdrawn (J26) |
| Withdrawal of reminders (J26) | Fading positive effects (D15) |
| Withdrawal of reminders (J26) | Persistent negative spillover effects (E71) |