Do low-cost economic incentives motivate healthy behavior?

Bhagyashree Katare

Economics & Human Biology, 2021, vol. 41, issue C

Abstract: We conducted a field experiment to test the effectiveness of a conditional, low-cost, and recurring financial incentive in motivating recreation center visits. Results indicate that the financial incentive did not motivate students’ recreation center visits. However, it was successful in increasing the frequency of recreation center visits for female students who had an established exercise habit. For a payout of $0.50, we estimate an increase of 0.4 visits per week for female students with established exercise habits. This provides modest evidence that the financial incentive structure was able to increase the behavioral response at the intensive margin. Our results show that the design of our financial incentive was not effective on the extensive margin. There was also no effect of the financial incentive on the recreation center visits for male students.

Keywords: Health behavior; Physical exercise; Financial incentive (search for similar items in EconPapers)
JEL-codes: C9 I12 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ehbiol:v:41:y:2021:i:c:s1570677x2100006x

DOI: 10.1016/j.ehb.2021.100982

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