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Compliance Behavior in Networks: Evidence from a Field Experiment

Author

Listed:
  • Francesco Drago
  • Friederike Mengel
  • Christian Traxler

Abstract

This paper studies the spread of compliance behavior in neighborhood networks in Austria. We exploit a field experiment that varied the content of mailings sent to potential evaders of TV license fees. The data reveal a strong treatment spillover: untreated households are more likely to switch from evasion to compliance in response to mailings received by their network neighbors. Digging deeper into the properties of the spillover, we find that it is concentrated among close neighbors of the targets and increases with the treated households' diffusion centrality. Local concentration of equally treated households implies a lower spillover.

Suggested Citation

  • Francesco Drago & Friederike Mengel & Christian Traxler, 2020. "Compliance Behavior in Networks: Evidence from a Field Experiment," American Economic Journal: Applied Economics, American Economic Association, vol. 12(2), pages 96-133, April.
    • Handle: RePEc:aea:aejapp:v:12:y:2020:i:2:p:96-133
    DOI: 10.1257/app.20170690
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    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L88 - Industrial Organization - - Industry Studies: Services - - - Government Policy
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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