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Habit Formation and Rational Addiction: A Field Experiment in Handwashing

Author

Listed:
  • Reshmaan Hussam

    () (Harvard Business School, Business, Government and the International Economy Unit)

  • Atonu Rabbani

    () (Dhaka University, Dept. of Economics)

  • Giovanni Reggiani

    () (Massachusetts Institute of Technology)

  • Natalia Rigol

    () (Harvard University)

Abstract

Regular handwashing with soap is believed to have substantial impacts on child health in the developing world. Most handwashing campaigns have failed, however, to establish and maintain a regular practice of handwashing. Motivated by scholarship that suggests handwashing is habitual, we design, implement and analyze a randomized field experiment aimed to test the main predictions of the rational addiction model. To reliably measure handwashing, we develop and produce a novel soap dispenser, within which a time-stamped sensor is embedded. We randomize distribution of these soap dispensers as well as provision of monitoring (feedback reports) or monitoring and incentives for daily handwashing. Relative to a control arm in which households receive no dispenser, we find that all treatments generate substantial improvements in child health as measured by child weight and height. Our key test of rational addiction is implemented by informing a subset of households about a future boost in monitoring or incentives. We find that (1) both monitoring and incentives increase handwashing relative to receiving only a dispenser; (2) these effects persist after monitoring or incentives are removed; and (3) the anticipation of monitoring increases handwashing rates significantly, implying that individuals internalize the habitual nature of handwashing and accumulate habit stock accordingly. Our results are consistent with the key predictions of the rational addiction model, expanding its relevance to settings beyond what are usually considered 'addictive' behaviors.

Suggested Citation

  • Reshmaan Hussam & Atonu Rabbani & Giovanni Reggiani & Natalia Rigol, 2017. "Habit Formation and Rational Addiction: A Field Experiment in Handwashing," Harvard Business School Working Papers 18-030, Harvard Business School.
  • Handle: RePEc:hbs:wpaper:18-030
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    References listed on IDEAS

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    Cited by:

    1. Joshua Blumenstock & Michael Callen & Tarek Ghani, 2018. "Why Do Defaults Affect Behavior? Experimental Evidence from Afghanistan," American Economic Review, American Economic Association, vol. 108(10), pages 2868-2901, October.
    2. Blumenstock, Joshua & Callen, Mike & Ghani, Tarek, 2018. "Why do defaults affect behavior? Experimental evidence from Afghanistan," LSE Research Online Documents on Economics 102899, London School of Economics and Political Science, LSE Library.
    3. Kristina Czura & Andreas Menzel & Martina Miotto, 2019. "Menstrual Health, Worker Productivity and Well-being among Female Bangladeshi Garment Workers," CERGE-EI Working Papers wp649, The Center for Economic Research and Graduate Education - Economics Institute, Prague.

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