Working Paper: NBER ID: w21481
Authors: Manuela Angelucci; Silvia Prina; Heather Royer; Anya Samek
Abstract: How do peers influence the impact of incentives? Despite much work on incentives, little is known about the spillover effects of incentives. We investigate two mechanisms by which these effects can occur: through peers' actions and peers' incentives. In a field experiment on snack choice (grapes versus cookies), we randomize who receives incentives, the fraction of peers incentivized, and whether or not it can be observed that peers' choices are incentivized among over 1,500 children in the school lunchroom. Incentives increase the likelihood of initially choosing grapes. However, peer spillover effects can be large enough to undo these positive effects.
Keywords: Incentives; Spillover Effects; Food Choice; Peer Influence; Field Experiment
JEL Codes: C93; I1; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Peer choices (C92) | Individual choices (D01) |
| Fraction of peers incentivized (C92) | Spillover effect from peers choosing grapes (C92) |
| Visibility of peer incentives (C92) | Overall spillover effect (F69) |
| 100% incentivized group vs 0% incentivized group (C92) | Overall effect of incentives (M52) |
| Incentives (M52) | Choosing grapes over cookies (L66) |