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Gender Differences in Reaction to Enforcement Mechanisms: A Large-Scale Natural Field Experiment

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  • Difang Huang
  • Zhengyang Bao

Abstract

We followed 58,345 borrowers from a peer-to-peer lending platform to study how females and males react to enforcement mechanisms differently. In the experiment, borrowers were randomized into treatments where they received different text messages urging for timely repayment if they had loans due the “next day”. Compared to a reminder message, the messages inducing social pressures and financial incentives reduced the overdue rate for both genders. However, females were more responsive to messages producing social pressures, while males were more responsive to financial incentives. The results imply the potential importance of a gender-dependent mechanism to enhance compliance.

Suggested Citation

  • Difang Huang & Zhengyang Bao, 2020. "Gender Differences in Reaction to Enforcement Mechanisms: A Large-Scale Natural Field Experiment," Monash Economics Working Papers 08-20, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2020-08
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    2. Saulı̄tis, Andris, 2023. "Nudging debtors with non-performing loans: Evidence from three field experiments," Journal of Behavioral and Experimental Finance, Elsevier, vol. 37(C).

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    More about this item

    Keywords

    Gender differences; Natural field experiment; Enforcement mechanism;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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