Crowding-in, crowding-out and over-crowding: The interaction between price and quantity based instruments and intrinsic motivation
We conduct a field experiment involving real purchasing decisions in a large supermarket chain to test the effect of different regulatory interventions aiming to induce a more climateâ€friendly diet on intrinsic motivation. Focusing on shoppers who prefer the dirty variety, we compare labeling, a subsidy, a product ban and neutrally framed versions of the latter two in their ability to induce shoppers to switch to cleaner varieties. Carbon footprint labels and bans activate intrinsic motivation of shoppers (crowdingâ€in). Remarkably, a subsidy framed as an explicit intervention is less effective than both a label and an equivalent but neutrally framed price change. The effects of information and changes in relative prices are not only not additive (crowdingâ€out) but combined perform worse than each individually (overâ€crowding). We therefore find markedly different effects of price and quantity based instruments on intrinsic motivation.
|Date of creation:||01 Mar 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 1603 591131
Fax: +44(0)1603 4562592
Web page: http://www.uea.ac.uk/eco/
More information through EDIRC
|Order Information:|| Postal: Helen Chapman, School of Economics, University of East Anglia, Norwich Research Park, Norwich, NR4 7TJ, UK|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Timo Goeschl & Grischa Perino, 2009.
"Instrment choice and motivation: Evidence from a climate change experiment,"
Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS)
09-05, School of Economics, University of East Anglia, Norwich, UK..
- Timo Goeschl & Grischa Perino, 2012. "Instrument Choice and Motivation: Evidence from a Climate Change Experiment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 52(2), pages 195-212, June.
- Armin Falk & Michael Kosfeld, .
"The Hidden Costs of Control,"
IEW - Working Papers
250, Institute for Empirical Research in Economics - University of Zurich.
- Ellingsen, Tore & Johannesson, Magnus, 2006.
"Pride and Prejudice: The Human Side of Incentive Theory,"
CEPR Discussion Papers
5768, C.E.P.R. Discussion Papers.
- Tore Ellingsen & Magnus Johannesson, 2008. "Pride and Prejudice: The Human Side of Incentive Theory," American Economic Review, American Economic Association, vol. 98(3), pages 990-1008, June.
- Montero, Juan-Pablo, 2002. "Prices versus quantities with incomplete enforcement," Journal of Public Economics, Elsevier, vol. 85(3), pages 435-454, September.
- Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough Or Don'T Pay At All," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 791-810, August.
When requesting a correction, please mention this item's handle: RePEc:uea:wcbess:11-10. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alasdair Brown)
If references are entirely missing, you can add them using this form.