IDEAS home Printed from https://ideas.repec.org/a/eee/soceco/v108y2024ics2214804323001817.html
   My bibliography  Save this article

The relationship between monetary incentives, social status, and physical activity

Author

Listed:
  • Valdez Gonzalez, Natalia I.
  • Kee, Jennifer Y.
  • Palma, Marco A.
  • Pruitt, J. Ross

Abstract

We conduct a field experiment to better understand the role of social status with and without monetary incentives as motivation to increase physical activity. We find that social status alone does not induce a change in physical activity. When social status is combined with monetary incentives, however, we find a change in the number of daily steps. This change is heterogeneous. Individuals with low physical activity increase their number of steps by 12%, while those with high physical activity decrease the number of steps by 25%. An incentives treatment with exogenous social status – uncorrelated with physical activity – provides robustness to our findings and, together with the control condition, rules out potential experimenter demand effects and other factors driving the results. Our results call for a cautionary approach for analyzing the role of social status, in many cases unobserved, for physical activity intervention programs.

Suggested Citation

  • Valdez Gonzalez, Natalia I. & Kee, Jennifer Y. & Palma, Marco A. & Pruitt, J. Ross, 2024. "The relationship between monetary incentives, social status, and physical activity," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
  • Handle: RePEc:eee:soceco:v:108:y:2024:i:c:s2214804323001817
    DOI: 10.1016/j.socec.2023.102155
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214804323001817
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.socec.2023.102155?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John A. List & Azeem M. Shaikh & Yang Xu, 2019. "Multiple hypothesis testing in experimental economics," Experimental Economics, Springer;Economic Science Association, vol. 22(4), pages 773-793, December.
    2. Rohde, Kirsten I.M. & Verbeke, Willem, 2017. "We like to see you in the gym—A field experiment on financial incentives for short and long term gym attendance," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 388-407.
    3. Thorstein Veblen, 1899. "Mr. Cummings's Strictures on "The Theory of the Leisure Class"," Journal of Political Economy, University of Chicago Press, vol. 8(1), pages 106-106.
    4. Heather Royer & Mark Stehr & Justin Sydnor, 2015. "Incentives, Commitments, and Habit Formation in Exercise: Evidence from a Field Experiment with Workers at a Fortune-500 Company," American Economic Journal: Applied Economics, American Economic Association, vol. 7(3), pages 51-84, July.
    5. Klaus Abbink & Benedikt Herrmann, 2011. "The Moral Costs Of Nastiness," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 631-633, April.
    6. Giacomo Calzolari & Mattia Nardotto, 2017. "Effective Reminders," Management Science, INFORMS, vol. 63(9), pages 2915-2932, September.
    7. Peter Kuhn & Peter Kooreman & Adriaan Soetevent & Arie Kapteyn, 2011. "The Effects of Lottery Prizes on Winners and Their Neighbors: Evidence from the Dutch Postcode Lottery," American Economic Review, American Economic Association, vol. 101(5), pages 2226-2247, August.
    8. Damon Jones & David Molitor & Julian Reif, 2019. "What do Workplace Wellness Programs do? Evidence from the Illinois Workplace Wellness Study," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(4), pages 1747-1791.
    9. Kenneth J. Arrow & Partha S. Dasgupta, 2009. "Conspicuous Consumption, Inconspicuous Leisure," Economic Journal, Royal Economic Society, vol. 119(541), pages 497-516, November.
    10. Beatty, Timothy K.M. & Katare, Bhagyashree, 2018. "Low-cost approaches to increasing gym attendance," Journal of Health Economics, Elsevier, vol. 61(C), pages 63-76.
    11. David Clingingsmith & Roman M. Sheremeta, 2018. "Status and the demand for visible goods: experimental evidence on conspicuous consumption," Experimental Economics, Springer;Economic Science Association, vol. 21(4), pages 877-904, December.
    12. Kämpfen, Fabrice & Maurer, Jürgen, 2016. "Time to burn (calories)? The impact of retirement on physical activity among mature Americans," Journal of Health Economics, Elsevier, vol. 45(C), pages 91-102.
    13. Camelia M. Kuhnen & Agnieszka Tymula, 2012. "Feedback, Self-Esteem, and Performance in Organizations," Management Science, INFORMS, vol. 58(1), pages 94-113, January.
    14. Mariana Carrera & Heather Royer & Mark Stehr & Justin Sydnor, 2020. "The Structure of Health Incentives: Evidence from a Field Experiment," Management Science, INFORMS, vol. 66(5), pages 1890-1908, May.
    15. Cawley, John & Price, Joshua A., 2013. "A case study of a workplace wellness program that offers financial incentives for weight loss," Journal of Health Economics, Elsevier, vol. 32(5), pages 794-803.
    16. Kreps, David M, 1997. "Intrinsic Motivation and Extrinsic Incentives," American Economic Review, American Economic Association, vol. 87(2), pages 359-364, May.
    17. Katare, Bhagyashree, 2021. "Do low-cost economic incentives motivate healthy behavior?," Economics & Human Biology, Elsevier, vol. 41(C).
    18. Dan Acland & Matthew R. Levy, 2015. "Naiveté, Projection Bias, and Habit Formation in Gym Attendance," Management Science, INFORMS, vol. 61(1), pages 146-160, January.
    19. Ludwig, Sandra & Lünser, Gabriele K., 2012. "Observing your competitor – The role of effort information in two-stage tournaments," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 166-182.
    20. Tomas Philipson & Richard Posner, 2008. "Is the Obesity Epidemic a Public Health Problem? A Decade of Research on the Economics of Obesity," NBER Working Papers 14010, National Bureau of Economic Research, Inc.
    21. Meltzer, David O. & Jena, Anupam B., 2010. "The economics of intense exercise," Journal of Health Economics, Elsevier, vol. 29(3), pages 347-352, May.
    22. Luigi Butera & Robert Metcalfe & William Morrison & Dmitry Taubinsky, 2022. "Measuring the Welfare Effects of Shame and Pride," American Economic Review, American Economic Association, vol. 112(1), pages 122-168, January.
    23. Gary Charness & Uri Gneezy, 2009. "Incentives to Exercise," Econometrica, Econometric Society, vol. 77(3), pages 909-931, May.
    24. Ori Heffetz, 2011. "A Test of Conspicuous Consumption: Visibility and Income Elasticities," The Review of Economics and Statistics, MIT Press, vol. 93(4), pages 1101-1117, November.
    25. Corneo, Giacomo & Jeanne, Olivier, 1997. "Conspicuous consumption, snobbism and conformism," Journal of Public Economics, Elsevier, vol. 66(1), pages 55-71, October.
    26. Fehr, Ernst & Glätzle-Rützler, Daniela & Sutter, Matthias, 2013. "The development of egalitarianism, altruism, spite and parochialism in childhood and adolescence," European Economic Review, Elsevier, vol. 64(C), pages 369-383.
    27. Bruno S. Frey & Reto Jegen, 2001. "Motivation Crowding Theory," Journal of Economic Surveys, Wiley Blackwell, vol. 15(5), pages 589-611, December.
    28. Bearden, William O & Etzel, Michael J, 1982. "Reference Group Influence on Product and Brand Purchase Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(2), pages 183-194, September.
    29. Benjamin R. Mandel, 2009. "Art as an Investment and Conspicuous Consumption Good," American Economic Review, American Economic Association, vol. 99(4), pages 1653-1663, September.
    30. Patrick Slade & Mykel J. Kochenderfer & Scott L. Delp & Steven H. Collins, 2021. "Sensing leg movement enhances wearable monitoring of energy expenditure," Nature Communications, Nature, vol. 12(1), pages 1-11, December.
    31. Philip S. Babcock & John L. Hartman, 2010. "Networks and Workouts: Treatment Size and Status Specific Peer Effects in a Randomized Field Experiment," NBER Working Papers 16581, National Bureau of Economic Research, Inc.
    32. Bagwell, Laurie Simon & Bernheim, B Douglas, 1996. "Veblen Effects in a Theory of Conspicuous Consumption," American Economic Review, American Economic Association, vol. 86(3), pages 349-373, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carrera, Mariana & Royer, Heather & Stehr, Mark & Sydnor, Justin, 2018. "Can financial incentives help people trying to establish new habits? Experimental evidence with new gym members," Journal of Health Economics, Elsevier, vol. 58(C), pages 202-214.
    2. Katare, Bhagyashree, 2021. "Do low-cost economic incentives motivate healthy behavior?," Economics & Human Biology, Elsevier, vol. 41(C).
    3. Baillon, Aurélien & Capuno, Joseph & O'Donnell, Owen & Tan, Carlos Antonio & van Wilgenburg, Kim, 2022. "Persistent effects of temporary incentives: Evidence from a nationwide health insurance experiment," Journal of Health Economics, Elsevier, vol. 81(C).
    4. Homonoff, Tatiana & Willage, Barton & Willén, Alexander, 2020. "Rebates as incentives: The effects of a gym membership reimbursement program," Journal of Health Economics, Elsevier, vol. 70(C).
    5. Patrizia Lattarulo & Marco Mariani & Laura Razzolini, 2017. "Nudging museums attendance: a field experiment with high school teens," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(3), pages 259-277, August.
    6. Carrera, Mariana & Royer, Heather & Stehr, Mark & Sydnor, Justin & Taubinsky, Dmitry, 2018. "The limits of simple implementation intentions: Evidence from a field experiment on making plans to exercise," Journal of Health Economics, Elsevier, vol. 62(C), pages 95-104.
    7. Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2018. "Habit formation, obesity, and cash rewards," Ruhr Economic Papers 750, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Itzik Fadlon & Torben Heien Nielsen, 2019. "Family Health Behaviors," American Economic Review, American Economic Association, vol. 109(9), pages 3162-3191, September.
    9. Erev, Ido & Hiller, Maximilian & Klößner, Stefan & Lifshitz, Gal & Mertins, Vanessa & Roth, Yefim, 2022. "Promoting healthy behavior through repeated deposit contracts: An intervention study," Journal of Economic Psychology, Elsevier, vol. 92(C).
    10. Hirofumi Kurokawa & Shusaku Sasaki, 2023. "How Does Opt-in Work? A Field Experiment on Financial Incentives for Physical Activity," Discussion Papers in Economics and Business 23-01, Osaka University, Graduate School of Economics.
    11. Mariana Carrera & Heather Royer & Mark Stehr & Justin Sydnor, 2020. "The Structure of Health Incentives: Evidence from a Field Experiment," Management Science, INFORMS, vol. 66(5), pages 1890-1908, May.
    12. Wolfgang Habla & Paul Muller, 2021. "Experimental evidence of limited attention at the gym," Experimental Economics, Springer;Economic Science Association, vol. 24(4), pages 1156-1184, December.
    13. Manuela Angelucci & Silvia Prina & Heather Royer & Anya Samek, 2015. "When Incentives Backfire: Spillover Effects in Food Choice," NBER Working Papers 21481, National Bureau of Economic Research, Inc.
    14. König, Tobias & Lausen, Tobias, 2016. "Relative consumption preferences and public provision of private goods," Discussion Papers, Research Unit: Market Behavior SP II 2016-213, WZB Berlin Social Science Center.
    15. Gary Charness & David Masclet & Marie Claire Villeval, 2014. "The Dark Side of Competition for Status," Management Science, INFORMS, vol. 60(1), pages 38-55, January.
    16. Eszter Czibor & David Jimenez‐Gomez & John A. List, 2019. "The Dozen Things Experimental Economists Should Do (More of)," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 371-432, October.
    17. John Beshears & Hae Nim Lee & Katherine L. Milkman & Robert Mislavsky & Jessica Wisdom, 2021. "Creating Exercise Habits Using Incentives: The Trade-off Between Flexibility and Routinization," Management Science, INFORMS, vol. 67(7), pages 4139-4171, July.
    18. Pascal Courty & Merwan Engineer, 2019. "A pure hedonic theory of utility and status: Unhappy but efficient invidious comparisons," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 21(4), pages 601-621, August.
    19. Banuri, Sheheryar & Nguyen, Ha, 2023. "Borrowing to keep up (with the Joneses): Inequality, debt, and conspicuous consumption," Journal of Economic Behavior & Organization, Elsevier, vol. 206(C), pages 222-242.
    20. Lechner, Michael & Fricke, Hans & Steinmayr, Andreas, 2017. "The Effect of Physical Activity on Student Performance in College: An Experimental Evaluation," CEPR Discussion Papers 12052, C.E.P.R. Discussion Papers.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:soceco:v:108:y:2024:i:c:s2214804323001817. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620175 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.