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Free riding or discounted riding? How the framing of a bike share offer impacts offer-redemption

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  • Elspeth Kirkman

    (The Behavioural Insights Team)

Abstract

We report the results of an experiment to increase use of a municipal bike sharing system. Two distinct groups – those who had newly moved close to a bike station (N=3,500) and those who lived in the vicinity of a newly built bike station (N=7,000) – were randomly assigned to receive one of two versions of a postcard offering free rides. In the first version, the offer is framed in terms of what recipients get for “free†. In the second, the same offer is framed in terms of its discount value: $12 off. We find no overall difference in redemption of the offer between postcard frames but for those with a new bike dock in their vicinity the “free†message is significantly more effective. We also note new movers are almost four times as likely to redeem the offer than those with a new dock in their vicinity. As a result of the study the city transportation bureau’s marketing team have used the “free†frame on subsequent materials and continue to target new movers.

Suggested Citation

  • Elspeth Kirkman, 2019. "Free riding or discounted riding? How the framing of a bike share offer impacts offer-redemption," Journal of Behavioral Public Administration, Center for Experimental and Behavioral Public Administration, vol. 2(2).
    • Handle: RePEc:bpd:articl:v:2:y:2019:i:2:jbpa.22.83
    DOI: 10.30636/jbpa.22.83
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    References listed on IDEAS

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    Cited by:

    1. Christian A. Vossler & Timothy N. Cason & James J. Murphy & Paul J. Ferraro & Todd L. Cherry & George Loewenstein & Peter Martinsson & Jason F. Shogren & Leaf van Boven & Daan van Soest, 2024. "The impact of experiments on environmental policy and natural resource management," Working Papers 2024-05, University of Tennessee, Department of Economics.

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    Keywords

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    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • Z00 - Other Special Topics - - General - - - General
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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