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Nudges in Exercise Commitment Contracts: A Randomized Trial

Author

Listed:
  • Jay Bhattacharya
  • Alan M. Garber
  • Jeremy D. Goldhaber-Fiebert

Abstract

We consider the welfare consequences of nudges and other behavioral economic devices to encourage exercise habit formation. We analyze a randomized trial of nudged exercise commitment contracts in the context of a time-inconsistent intertemporal utility maximization model of the demand for exercise. The trial follows more than 4,000 people seeking to make exercise commitments. Each person was randomly nudged towards making longer (20 weeks) or shorter (8 weeks) exercise commitment contracts. Our empirical analysis shows that people who are interested in exercise commitment contracts choose longer contracts when nudged to do so, and are then more likely to meet their pre-stated exercise goals. People are also more likely to enroll in a subsequent commitment contract after the original expires if they receive a nudge for a longer duration initial contract. Our theoretical analysis of the welfare implications of these effects shows conditions under which nudges can reduce utility even when they succeed in the goal of promoting habitual exercise.

Suggested Citation

  • Jay Bhattacharya & Alan M. Garber & Jeremy D. Goldhaber-Fiebert, 2015. "Nudges in Exercise Commitment Contracts: A Randomized Trial," NBER Working Papers 21406, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:21406
    Note: EH
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    Citations

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    Cited by:

    1. Itzik Fadlon & Torben Heien Nielsen, 2019. "Family Health Behaviors," American Economic Review, American Economic Association, vol. 109(9), pages 3162-3191, September.
    2. Yannick Vandenplas & Steven Simoens & Florian Turk & Arnold G. Vulto & Isabelle Huys, 2022. "Applications of Behavioral Economics to Pharmaceutical Policymaking: A Scoping Review with Implications for Best-Value Biological Medicines," Applied Health Economics and Health Policy, Springer, vol. 20(6), pages 803-817, November.
    3. Sadoff, Sally & Samek, Anya, 2019. "Can interventions affect commitment demand? A field experiment on food choice," Journal of Economic Behavior & Organization, Elsevier, vol. 158(C), pages 90-109.
    4. Zarko Kalamov & Marco Runkel, 2020. "Present-Focused Preferences and Sin Goods Consumption at the Extensive and Intensive Margins," CESifo Working Paper Series 8237, CESifo.
    5. Damgaard, Mette Trier & Gravert, Christina, 2018. "The hidden costs of nudging: Experimental evidence from reminders in fundraising," Journal of Public Economics, Elsevier, vol. 157(C), pages 15-26.
    6. Muller, Paul & Habla, Wolfgang, 2018. "Experimental and non-experimental evidence on limited attention and present bias at the gym," ZEW Discussion Papers 18-041, ZEW - Leibniz Centre for European Economic Research.
    7. Erica Freer & Quinn Keefer, 2022. "Optimism Bias and Perceptions of Behavioral Factors for Preventing Severe COVID-19 Complications," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 6(1), pages 11-20, December.
    8. Gormley, Laura & Belton, Cameron & Lunn, Pete & Robertson, Deirdre, 2019. "Interventions to increase physical activity in disadvantaged communities: A review of behavioural mechanisms," Papers WP646, Economic and Social Research Institute (ESRI).
    9. Anne Corcos, 2023. "How nudges and marketing, frame time preference “for your own good”: a behavioral model," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    10. Marquez-Padilla, Fernanda, 2021. "When less is more: Can reduced health monitoring improve medication adherence?," Journal of Health Economics, Elsevier, vol. 75(C).

    More about this item

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • I1 - Health, Education, and Welfare - - Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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