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Habit formation, obesity, and cash rewards

Author

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  • Augurzky, Boris
  • Bauer, Thomas K.
  • Reichert, Arndt R.
  • Schmidt, Christoph M.
  • Tauchmann, Harald

Abstract

This paper examines weight loss and the formation of healthy habits through cash rewards in the context of a multi-phase randomized controlled trial involving 700 obese individuals. We find effects of monetary incentives for weight loss of up to EUR 300 on body weight during all experimental phases, including a period of a year and a half following the exposure to the financial rewards. We also find effects on healthy behavior during this follow-up phase. After the initial incentive period, we additionally provided participants who had lost a substantial amount of weight with monetary rewards of up to EUR 500. These had only short-term effects on body weight and healthy behavior. We argue that our findings are best explained by monetarily incentivized participants having formed healthy habits by the time the experiment ended and that only the speed of the transition to the new (health) equilibrium was affected by the additional rewards. Contrary to the pessimistic perspective presented in earlier empirical research on habit formation, our results suggest that a simple program relying on weight loss rewards can result in long-term health behavioral change.

Suggested Citation

  • Augurzky, Boris & Bauer, Thomas K. & Reichert, Arndt R. & Schmidt, Christoph M. & Tauchmann, Harald, 2018. "Habit formation, obesity, and cash rewards," Ruhr Economic Papers 750, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:750
    DOI: 10.4419/86788871
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    Cited by:

    1. Krekel, Christian & Kavetsos, Georgios & Ziebarth, Nicolas R., 2025. "Passing on the flame: Do mega sports events promote health behaviours?," Social Science & Medicine, Elsevier, vol. 377(C).
    2. Jan Marcus & Thomas Siedler & Nicolas R. Ziebarth, 2022. "The Long-Run Effects of Sports Club Vouchers for Primary School Children," American Economic Journal: Economic Policy, American Economic Association, vol. 14(3), pages 128-165, August.
    3. Andrej Woerner & Giorgia Romagnoli & Birgit M. Probst & Nina Bartmann & Jonathan N. Cloughesy & Jan Willem Lindemans, 2025. "Should Individuals Choose Their Own Incentives? Evidence from a Mindfulness Meditation Intervention," Management Science, INFORMS, vol. 71(8), pages 7056-7070, August.
    4. Lucas Hafner & Harald Tauchmann & Ansgar Wübker, 2021. "Does moderate weight loss affect subjective health perception in obese individuals? Evidence from field experimental data," Empirical Economics, Springer, vol. 61(4), pages 2293-2333, October.
    5. Tauchmann Harald & Wübker Ansgar, 2023. "Weight Loss and Sexual Activity in Adult Obese Individuals: Establishing a Causal Link," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 243(6), pages 663-698, December.

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    Keywords

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    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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