The Impact of Personal Experience on Behavior: Evidence from Video-Rental Fines

Michael P. Haselhuhn (), Devin Pope, Maurice E. Schweitzer () and Peter Fishman ()
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Michael P. Haselhuhn: Lubar School of Business, University of Wisconsin-Milwaukee, Milwaukee, Wisconsin 53211
Maurice E. Schweitzer: The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania 19104
Peter Fishman: University of California, Berkeley, Berkeley, California 94704

Management Science, 2012, vol. 58, issue 1, 52-61

Abstract: Personal experience matters. In a field setting with longitudinal data, we disentangle the effects of learning new information from the effects of personal experience. We demonstrate that experience with a fine, controlling for the effect of learning new information, significantly boosts future compliance. We also show that experience with a large fine boosts compliance more than experience with a small fine, but that the influence of experience with both large and small fines decays sharply over time. This paper was accepted by Brad Barber, Teck Ho, and Terrance Odean, special issue editors.

Keywords: behavioral economics; decision making; backward-looking behavior; decisions following descriptions versus experience; learning (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (31)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:58:y:2012:i:1:p:52-61

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