MOTIVATION CROWDING IN REAL CONSUMPTION DECISIONS: WHO IS MESSING WITH MY GROCERIES?

Grischa Perino, Luca Panzone and Timothy Swanson

Economic Inquiry, 2014, vol. 52, issue 2, 592-607

Abstract: type="main" xml:lang="en">

We present evidence of crowding out of intrinsic motivation in real purchasing decisions from a field experiment in a large supermarket chain. We compare three instruments, a label, a subsidy, and a neutral price change, in their ability to induce consumers to switch from dirty to clean products. Interestingly, a subsidy framed as an intervention is less effective than either a label or a neutrally framed price change. We argue that this provides a new explanation for crowding behavior: consumers are resistant to having the line of demarcation between public and private decision making moved in either direction. (JEL C93, Q18, Q54, Q58, H23, H41)

Date: 2014
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