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Put a Bet on It: Can Self-Funded Commitment Contracts Curb Fitness Procrastination?

Author

Listed:
  • Spika, Devon

    (Department of Economics, Lund University)

  • Wickström Östervall, Linnea

    (Swedish Research Council)

  • Gerdtham, Ulf

    (Department of Economics, Lund University)

  • Wengström, Erik

    (Department of Economics, Lund University)

Abstract

This paper investigates the use of self-funded commitment contracts to support individuals in achieving their goals of increased physical activity. We compare the effect of soft (non-incentivised) commitment contracts with hard (incentivised) contracts using a randomised experiment with 1629 members of a large gym in Stockholm, Sweden. We find a significant positive impact of being offered a hard contract on monthly visits to the gym and the probability of meeting one's contract goal. Hard and soft commitment contracts increase gym visits by 21% and 8%, respectively, relative to the control group. Trait self-control is negatively associated with the likelihood of accepting a contract and accepting to add stakes. The effect of soft and hard commitment contracts does not, however, differ by trait self-control. Importantly, we find that the effects of both hard and soft contracts were greatest among participants who reported exercising the least at baseline. Our experiment explores the use of a completely self-funded and highly scalable intervention. Our experimental design allows us to shed light on the importance of hard penalties in designing commitment contracts.

Suggested Citation

  • Spika, Devon & Wickström Östervall, Linnea & Gerdtham, Ulf & Wengström, Erik, 2023. "Put a Bet on It: Can Self-Funded Commitment Contracts Curb Fitness Procrastination?," Working Papers 2023:4, Lund University, Department of Economics.
    • Handle: RePEc:hhs:lunewp:2023_004
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    More about this item

    Keywords

    Incentives; Commitment contract; Self-control; Gym attendance;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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