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Spillover effects of nudges

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  • Nafziger, Julia

Abstract

We consider a theoretical model where an individual pays limited attention to decision relevant factors. Nudges increase attention to a factor, but can have, at the same time, attentional spillover effects to other factors. As a consequence, nudges can have detrimental effects on desired behavior and consumption utility. Further, measuring behavioral changes in the nudged domain sometimes does not yield the right conclusions about the effects of the nudge on utility — even with an additive separable utility function.

Suggested Citation

  • Nafziger, Julia, 2020. "Spillover effects of nudges," Economics Letters, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:ecolet:v:190:y:2020:i:c:s016517652030080x
    DOI: 10.1016/j.econlet.2020.109086
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    References listed on IDEAS

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    1. Katrina Jessoe & Gabriel E. Lade & Frank Loge & Edward Spang, 2021. "Spillovers from Behavioral Interventions: Experimental Evidence from Water and Energy Use," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(2), pages 315-346.
    2. 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.
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    10. Hunt Allcott & Judd B. Kessler, 2019. "The Welfare Effects of Nudges: A Case Study of Energy Use Social Comparisons," American Economic Journal: Applied Economics, American Economic Association, vol. 11(1), pages 236-276, January.
    11. Milkman, Katherine L. & Beshears, John Leonard & Choi, James J. & Laibson, David I. & Madrian, Brigitte, 2011. "Using Implementation Intentions Prompts to Enhance Influenza Vaccination Rates," Scholarly Articles 8057976, Harvard Kennedy School of Government.
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    Cited by:

    1. Koch, Alexander K. & Monster, Dan & Nafziger, Julia, 2023. "Nudging in Complex Environments," IZA Discussion Papers 16137, Institute of Labor Economics (IZA).
    2. Castro, Juan Francisco & Velásquez, Daniel & Beltrán, Arlette & Yamada, Gustavo, 2022. "The direct and indirect effects of messages on tax compliance: Experimental evidence from Peru," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 483-518.
    3. Sasaki, Shusaku & Saito, Tomoya & Ohtake, Fumio, 2022. "Nudges for COVID-19 voluntary vaccination: How to explain peer information?," Social Science & Medicine, Elsevier, vol. 292(C).
    4. Bonev, Petyo, 2023. "Behavioral Spillovers," Economics Working Paper Series 2303, University of St. Gallen, School of Economics and Political Science.

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    More about this item

    Keywords

    Nudging; Limited attention; Spillover effects;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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