Template-Type: ReDIF-Paper 1.0
Title: The Habit-Forming Effects of Feedback: Evidence From a Large-Scale Field Experiment
Author-Name: David P. Byrne
Author-Email: byrned@unimelb.edu.au
Author-Name: Lorenz Goette
Author-Email: lorenz.goette@uni-bonn.de
Author-Name: Leslie A. Martin
Author-Email: leslie.martin@unimelb.edu.au
Author-Name: Lucy Delahey
Author-Email: 
Author-Name: Alana Jones
Author-Email: 
Author-Name: Amy Miles
Author-Email: 
Author-Name: Samuel Schob
Author-Email: 
Author-Name: Thorsten Staake
Author-Email: 
Author-Name: Verena Tiefenbeck
Author-Email: 

Classification-JEL: C93, D12, D83, Q25
Keywords: Habit formation, Attention, Realtime feedback, Water usage, Randomized Control Trial

Abstract: We provide a unique test of competing models of persistence in behavior. We propose a new
attention-based behavioral mechanism for habit formation and contrast its predictions with the Stigler
and Becker (1977) consumption-based mechanism. We test both mechanisms using a large-scale field
experiment in shower water consumption. Our experiment varies cycles of household-level real-time
feedback that temporarily draws attention to individuals’ water consumption. Combining this design
with real-time consumption data, we test the mechanism for persistence in behavior that our experiment
generates. Our results strongly support a dynamic attention-based model of habit over the workhorse
habit stock model used in economics.

Note: 
Length: 48
Creation-Date: 2021-04
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp285
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2021_285