Toward an Understanding of the Economics of Apologies: Evidence from a Large-Scale Natural Field Experiment

Basil Halperin, Benjamin Ho, John List and Ian Muir

No 25676, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use a theory of apologies to design a nationwide field experiment involving 1.5 million Uber ridesharing consumers who experienced late rides. Several insights emerge from our field experiment. First, apologies are not a panacea: the efficacy of an apology and whether it may backfire depend on how the apology is made. Second, across treatments, money speaks louder than words – the best form of apology is to include a coupon for a future trip. Third, in some cases sending an apology is worse than sending nothing at all, particularly for repeated apologies. For firms, caveat venditor should be the rule when considering apologies.

JEL-codes: C9 C93 D80 D91 Z13 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-exp
Note: IO PR
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published as Basil Halperin & Benjamin Ho & John A List & Ian Muir, 2022. "Toward An Understanding of the Economics of Apologies: Evidence from a Large-Scale Natural Field Experiment," The Economic Journal, vol 132(641), pages 273-298.

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Related works:
Journal Article: Toward An Understanding of the Economics of Apologies: Evidence from a Large-Scale Natural Field Experiment (2022)
Working Paper: Toward an understanding of the economics of apologies: evidence from a large-scale natural field experiment (2018)
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