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Rational Habit Formation: Experimental Evidence from Handwashing in India

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  • Reshmaan Hussam
  • Atonu Rabbani
  • Giovanni Reggiani
  • Natalia Rigol

Abstract

We test the predictions of the rational addiction model, reconceptualized as rational habit formation, in the context of handwashing in rural India. To track handwashing, we design soap dispensers with timed sensors. We test for rational habit formation by informing some households about a future change in the returns to daily handwashing. Monitoring and incentives raise handwashing contemporaneously, and effects persist well after they end. In addition, people are rational about this habit formation: when they anticipate future monitoring, they increase their current handwashing. Average child weight and height increase for all study arms given soap dispensers.

Suggested Citation

  • Reshmaan Hussam & Atonu Rabbani & Giovanni Reggiani & Natalia Rigol, 2022. "Rational Habit Formation: Experimental Evidence from Handwashing in India," American Economic Journal: Applied Economics, American Economic Association, vol. 14(1), pages 1-41, January.
    • Handle: RePEc:aea:aejapp:v:14:y:2022:i:1:p:1-41
    DOI: 10.1257/app.20190568
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    References listed on IDEAS

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    1. Anderson, Michael L, 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt15n8j26f, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Daniel Bennett & Asjad Naqvi & Wolf‐Peter Schmidt, 2018. "Learning, Hygiene and Traditional Medicine," Economic Journal, Royal Economic Society, vol. 128(612), pages 545-574, July.
    3. Anderson, Michael L., 2008. "Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects," Journal of the American Statistical Association, American Statistical Association, vol. 103(484), pages 1481-1495.
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    Cited by:

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    3. Koch, Alexander K. & Monster, Dan & Nafziger, Julia, 2023. "Nudging in Complex Environments," IZA Discussion Papers 16137, Institute of Labor Economics (IZA).
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    6. Soren, Anup Anurag & Chakraborty, Shibashish, 2023. "The formation of habit and word-of-mouth intention of over-the-top platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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